ANZ raised its zero to 3-month gold price forecast to $3,100 per ounce and 6-month forecast to $3,200 per ounce, according to a research note Tuesday.
Gold prices surpassed the significant $3,000 mark on Tuesday for the second time, setting a new high, as investors sought cover from economic concerns fueled by U.S. President Donald Trump's tariff policies.
For gold "we maintain our bullish view, amid strong tailwinds from escalating geopolitical and trade tensions, easing monetary policy, and strong central bank buying," the bank said.
Traditionally viewed as a safe asset against geopolitical instability, gold has gained over 14% so far this year. Bullion has hit a record high 14 times.
"As for the gold market, fear of import tariffs has tightened liquidity in the London spot market, as supply flows to the U.S. This has triggered arbitrage trades, with a widening spread between Comex futures and London spot," ANZ said.
"We see this supply dislocation taking some time to normalize and keeping silver prices volatile."
However, industrial demand is likely to be resilient despite tariff-related headwinds, analysts at the bank said in the research note, adding that investment demand will be crucial for raising silver’s price.
The bank noted that in the short term silver will trade within the $34-$36 per ounce range. Spot silver gained 0.1% to $33.89 an ounce as of 0422 GMT.