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

Gold's Role as a Diversifier - Gold has emerged as a key diversifier in 2025, especially when government bonds are not effectively serving this purpose [1][2] - Gold is now considered important for both diversification and structural purposes in asset allocation [2] Central Bank and Geopolitical Factors - Central bank reserve shifts are critical to gold's role, potentially linked to geopolitical reordering [3] - Central banks might sell treasuries or US dollars to increase their gold reserves [3] - Central bank gold reserves could potentially double compared to pre-Bretton Woods levels [3] - A parallel financial settlement system, where central banks provide liquidity in their domestic currencies, enhances gold's role as security [4] - Central bank gold reserves are expected to increase, which will likely push up the gold price [4] Gold Price Forecast - The forecast for the gold price next year is $4600 [5]