Gold prices are reaching heaven’s doors in 2025 as the XAU/USD index is touching the $3,650 mark on Wednesday. In the last 24 hours alone, the precious metal has surged by 20 points with a spike of 0.65%. The rally is sustained by solid demand from retail investors, central banks, and institutional funds. The demand for accumulation has remained relatively stable over the last two years, making it a prime investment opportunity. Australia’s ANZ Bank has provided a bullish outlook for gold, predicting the surge is just the start.
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ANZ Bank: Gold Prices Will Reach $3,800 Next
The ANZ Group raised its gold price forecast to $3,800 in a recent note to stakeholders. The prediction estimates that the glittery metal could reach the $3,800 price target by the end of 2025. That’s close to another 4.5% from its current price of $3,650. The precious metal has surged close to 39% year-to-date, delivering staggering results to traders.
ANZ Bank highlighted the solid demand for gold that’s pushing its prices up in the charts. The continued demand comes after investors are skeptical about the ongoing tariffs and trade wars. The XAU/USD index is a safe option that insulates itself from the market’s instability. Not only has it insulated itself, but it is also growing at a much higher rate.
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“Prospects of continued accommodative monetary policy, increasing geopolitical tensions, ongoing macroeconomic challenges, and concerns over the Fed’s independence are expected to strengthen the investment case for gold,” ANZ analysts said in a note.
“Rising risks to the labour market will likely prompt the US Fed to maintain its easing stance through to March 2026. This will exert downward pressure on US Treasury yields, which normally enhances the appeal of gold,” ANZ summed it up. In conclusion, even with the XAU/USD at $3,650, it remains a favorable time to enter the markets.