Gold to Reach $4,600 Next Year: Lombard Odier Forecast

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00:00What does gold represent to you now?

00:03Really, gold has been the one asset that has come forward in 2025 as the ultimate diversifier.

00:11Remember in April, actually, government bonds were not really helping to diversify.

00:16So gold has taken this new position for asset allocators.

00:20And it's also part of the explanation of the incredible rally and ascent of gold

00:26in spite of the volatility now of past week.

00:30Has experience this year.

00:32So a very important asset for diversification purposes, but also for structural purposes, Francine.

00:39Gold is going to be really quite critical in everything that is happening at central bank reserve shifts.

00:48So, Nanette, I mean, is this really also part of the geopolitical reordering?

00:52And if this is, you know, maybe central banks selling treasury, selling a dollar to buy gold,

00:58is there a target price or does it just go up and up?

01:04Well, you can take basically pre-Bretton Woods and take a look at how much gold represented in central bank reserves.

01:13And it's about twice as much as it does now.

01:17I'm not suggesting that central banks overall are going that way.

01:21But what is clear is that if the financial system continues to evolve and financial settlement systems continue to evolve with a parallel one

01:32where central banks are providing liquidity to each other in their domestic currencies,

01:38gold is playing a very interesting role as a security, if you like, against that.

01:44So I do think that central bank reserves are going to go up.

01:50And I do also think that this will push up the gold price for now.

01:54Our forecast for next year is that it might reach 4,600.

01:58Our forecast for next year is that it might reach 4,600.

02:00Our forecast for next year is that it might reach 5,600.

02:01Our forecast for next year is that it might reach 5,600.

02:02Our forecast for next year is that it might reach 5,600.

02:03Our forecast for next year is that it might reach 5,600.

02:04Our forecast for next year is that it might reach 5,600.

02:05Our forecast for next year is that it might reach 5,600.

02:06Our forecast for next year is that it might reach 5,600.

02:07Our forecast for next year is that it might reach 5,600.

02:08Our forecast for next year is that it might reach 5,600.

02:09Our forecast for next year is that it might reach 5,600.

02:10Our forecast for next year is that it might reach 5,600.

02:11Our forecast for next year is that it might reach 5,600.