BNP Paribas: Gold Prices Could Reach 6 Thousand Dollars!

BNP Paribas' Predicts Gold Price of $6,000

BNP Paribas's Commodity Strategy Director Wilson noted that the gold-to-silver ratio is still below its two-year average from the 1980s, although it is undergoing a significant recovery. In a statement made on Bloomberg TV, he said, "Gold makes sense to me, but silver is not providing the same risk protection at the moment."

Central Bank Purchases Support Gold

Wilson emphasized that the positive outlook for gold prices is supported by the ongoing purchases from central banks in countries like Poland. He also mentioned that the ETF inflows for physical gold remained stable and have risen again following last week's correction.

Long-Term Demand in the Markets

Leading financial institutions such as Deutsche Bank and Goldman Sachs believe that the factors behind long-term demand for gold will support the recovery. Additionally, the Chinese Central Bank has extended its gold purchases until January of this year, emphasizing that official demand is strong.

Fluctuations in Silver and Chinese Demand

Silver prices have experienced significant fluctuations in recent months, particularly due to increased physical purchases in Asia. However, signs of softening have begun to appear in the physical market as metal supply shifts to Europe and Asia. According to Wilson, the upcoming Chinese New Year holiday may further reduce silver demand in China.