CIBC Forecasts Gold Prices to Reach Historic Highs

Gold prices are on track to reach an unprecedented USD 3,600 per ounce in the latter part of 2025, with expectations that they will remain around those levels into the following year. This optimistic outlook is based on projections from analysts at CIBC Capital Markets, who are anticipating an early rally in 2025.

Since the beginning of the year, spot prices for gold have surged approximately 28%. The price hit a peak of roughly 3,500 US dollars per ounce at the end of April, but has since settled back to around 3,300 USD.

Anita Soni, an analyst at CIBC, stated that the current global climate of uncertainty is making alternative reserve assets, like gold, more attractive to investors. Back in December, her team had estimated that the average gold price for 2025 would be around 2,800 USD per ounce.

“Over the past seven months, there have been significant global developments, including the initiation of a trade war and various protective tariffs imposed by the new U.S. administration,” Soni noted in a recent report. “This situation, coupled with increasing geopolitical tensions, particularly in the Middle East and Russia, contributes to the rising appeal of gold.”

CIBC now expects gold bullion to average USD 3,600 per ounce throughout the second half of 2025 and into 2026.

On Monday, the Toronto-based bank adjusted its price targets for 36 Canadian gold mining stocks, citing ongoing central bank purchases and favorable conditions for precious metals which include lower interest rates and geopolitical uncertainty.

“We see a supportive macroeconomic environment for gold moving forward,” Soni mentioned. She added that it seems likely that rate reductions from the U.S. Federal Reserve are becoming more a matter of timing rather than a question of possibility.

The top gold stocks recommended by CIBC include Agnico Eagle Mines, Kinross Gold, Alamos Gold, Franco-Nevada, and Discovery Silver.