MUFG: Gold’s steamroller rally is far from overblown

Commodities Weekly

Despite persistently notching fresh peaks, our conviction remains resolute that we are a distance away from overextended or bubble territory, and maintain our above consensus forecasts for gold to catapult even higher and hit USD3,850/oz by year end and breach north of the USD4,000/oz threshold by Q2 2026.

Supply constraints persist in silver, the potential for it to outperform gold is limited under current conditions.We forecast silver to reach USD35.5/oz by Q4 2025, but a bearish scenario remains, depending on how policy rates, industrial activity, and mine supply evolve.

About MUFG: They are the largest bank in Japan, 7th in the wold by asset size eclipsed in the west only by JPMorgan and Chase. They have been ahead of the curve on Gold’s rally with more agressive 2 years ago than their bankiing competitors when they called for all commodities to be sold excedpt Gold. Now, the pack has caught up to them. We shall see if their opinion pivots higher yet again in coming months.