Since this year, the rise of precious metals has dominated the commodity market, in March this year, the price of gold broke the threshold of $3,000 per ounce, broke the threshold of $4,000 earlier this month, and on October 14 again reached a new high, breaking $4,100 per ounce.

Analysts pointed out that the current gold trading boom is partly backed by the expected heating of the Fed¡¯s interest rate cuts, while the U.S. federal government is still ¡°stagnant¡± and no one is sure when it will end, meaning the U.S. economy could be shocked.

Bart Melek, head of global commodity strategy at TD Securities: This may prompt the Federal Reserve to adopt more aggressive easing policies, and it also means that the cost of holding gold will fall. Therefore, many prop traders who rely on personal judgment may be more confident in entering the market to lay out gold.

In addition, the global central bank¡¯s money-purchase boom and the rise in gold ETF holdings have also fueled the rise of precious metals.Analysis notes that there is a trend now, whether global central banks, institutional investors or individual investors, to turn some of the money that was originally allocated to U.S. government bonds to gold.

John Champalia, CEO of Global Asset Management, Sprott: It¡¯s important that we think about what signals a rising gold price is sending to the market, reflecting a substantially high level of uncertainty and risk, while also reflecting the market¡¯s concerns about long-term U.S. bonds in the U.S. dollar and short-term U.S. bonds, which have been the world¡¯s major reserve assets for decades.

Against this background, on Monday local time, Bank of America raised its price forecasts for gold and silver, becoming the first large bank on Wall Street to raise its 2026 gold price forecast to $5,000 per ounce and its silver price forecast to $65 per ounce.

Bank of America pointed out that the White House's "non-traditional policy framework" will continue to benefit gold, and factors including the widening U.S. fiscal deficit and rising debt will also push gold prices to continue to rise next year. In addition, Bank of America analysis believes that silver is about to usher in the fifth consecutive year of structural supply shortage, and tight supply may support silver prices.

However, many banks have also warned that both gold and silver are currently showing signs of overbought, and investors should remain vigilant. Analysts also pointed out that silver faces greater adjustment risks in the short term, and prices may fluctuate as liquidity increases and demand slows.