The World Gold Council offers three scenario predictions: at best, it could rise by another 15%; at worst, it could plumper…

According to precious metals analysts at the World Gold Council, the outlook for gold prices over the next 18 months leans upward, while silver and platinum are expected to continue their recent strength until 2026.

Jeetendra Khadan, a senior economist in the World Gold Council’s Outlook Group, and Kaltrina Temaj, a research analyst, wrote, “Precious metal prices soared to record highs in the first half of 2025, building on a 20% increase in 2024. This rally was led by gold Investment demand is strong amid a weakening US dollar, fluctuating interest rates and a highly uncertain geo-economic environment.

Analysts say that a question repeatedly raised by investors is, “Has gold peaked or does it have enough fuel to continue rising?”

Using its gold valuation framework, the World Gold Council analyzed the indications of current market expectations for gold’s performance in the second half of 2025, as well as various driving factors that could push up or push down the gold price. They wrote:

If the macro predictions of economists and market participants are correct, our analysis indicates that gold may consolidate sideways and have a small upside potential – an additional 0% to 5% increase in the second half of the year. However, the economy rarely develops in accordance with consensus. If economic and financial conditions deteriorate, intensifying stagflation pressure and geopolitical tensions, the demand for safe-haven assets could increase significantly, pushing the gold price up by another 10% to 15% from its current level. On the other hand, extensive and sustained conflict resolution – which seems unlikely in the current environment – will cause gold to give back its 12% to 17% gains this year.

The performance of gold is astonishing!

The World Gold Council pointed out that gold’s performance so far in 2025 has been record-breaking.

“Gold, as one of the best-performing major asset classes, ended the first half of the year, rising by nearly 26% during that period,” they pointed out. It set 26 new historical highs in the first half of 2025, having previously surpassed 40 in 2024.

Analysts said that this outstanding performance is the result of a combination of factors, including the weakening of the US dollar, fluctuations in the yield range due to expectations of future interest rate cuts, and “intensified geopolitical tensions – some of which are directly or indirectly related to US trade policies.”

“Stronger demand also comes from the increase in trading activities in over-the-counter (OTC) markets, exchanges and ETFs,” they said. This brought the average daily trading volume of gold in the first half of the year to 329 billion US dollars – setting a record for the highest half-year figure on record. Central banks around the world have also made contributions by purchasing at a strong pace – even if not reaching the record levels of the previous quarters.

The World Gold Council pointed out that “One of the most important macro themes so far this year is the weak performance of the US dollar, which has recorded its worst start to the year since 1973. This is also reflected in the weak performance of US Treasuries, which have been synonymous with safety for more than a century.” However, against the backdrop of increased uncertainty in April, the inflow of funds into US Treasuries faltering.

On the contrary, the demand for gold ETFs was particularly strong in the first half of the year, with significant inflows of funds in all regions, they said. By the end of the first half of the year, the combined effect of soaring gold prices and investors’ rush to safe-haven assets pushed the total assets under management (AUM) of global gold ETFs up by 41% to $383 billion. The total holdings increased by an astonishing 397 tons (equivalent to 38 billion US dollars) to 3,616 tons – the highest month-end level since August 2022.

“Trade-related and other geopolitical risks have played a huge role, not only directly but also by driving changes in the US dollar, interest rates and broader market volatility – all of which have increased the appeal of gold as a safe-haven asset,” they added. All in all, these factors have contributed approximately 16% to gold’s returns over the past six months.”