The London Bullion Market Association (LBMA) predicts the price of gold to reach an unprecedented USD$4,980 an ounce over the next year, representing a 27 per cent increase from current levels
The LBMA held their annual gathering in Kyoto on Tuesday. Analysts say the rally reflects a mix of global factors, including trade tensions, rising tariffs in the United States, and mounting geopolitical instability. The LBMA’s survey of members found that many expect these pressures to persist, further boosting gold’s appeal as a safe-haven asset.
Prices have surged 52 per cent this year, breaking past key psychological levels of USD$3,000 in March and USD$4,000 in October. On October 20, the metal breached another all-time high record of USD$4,381 an ounce, driven by investor enthusiasm and fears of missing out on further gains.
Reuters released a similar outlook this week, predicting an average gold price of USD$4,275 in 2026 as investors continue to seek stability. While the two forecasts differ slightly, both suggest confidence that gold’s momentum will extend well into next year.
Silver is also expected to post strong gains. LBMA delegates predicted the metal will reach USD$59 per ounce within 12 months, compared with roughly USD$46 today. Silver prices have already jumped 62 per cent in 2025, the sharpest annual rise since 2010. Tight supplies in the London spot market and surging investment demand have added upward pressure.
Read more: NevGold Expands Gold-Antimony Potential at Limousine Butte in Nevada
Read more: GoldMining chooses to retain its NevGold shares for next 18 months
The downstream effects are all positive
The surge in gold prices to record highs is reshaping industries across the precious metals sector. For gold producers, jewelry manufacturers, and related companies, this trend presents both opportunities and challenges.
Major mining companies are benefiting from higher gold prices. Barrick Mining Corp (TSE: ABX) (NYSE: B) (ETR: ABR0) has seen its stock rise as elevated gold levels improve profitability and support reinvestment in exploration. Similarly, Vancouver-based junior, NevGold Corp (CVE: NAU) (OTCMKTS: NAUFF) (FRA: 5E50), is taking advantage of favourable market conditions. In its latest update, NevGold reported high-grade results from its Limo Butte project, with drill holes showing near-surface gold and antimony mineralization.
Jewelry makers face a dual-edged situation. While higher gold prices increase the value of their products, they also push up production costs. This can lead to higher retail prices, which may dampen consumer demand. However, gold’s long-standing appeal as both a luxury item and investment asset may sustain interest in high-end jewelry.
Peripheral industries are also feeling the effects of the rally. Equipment suppliers, logistics providers, and other businesses tied to mining are seeing growth as mining activity expands. Additionally, financial services offering gold-backed investment products are experiencing heightened demand as investors hedge against economic and geopolitical uncertainty.
The rising gold market is encouraging companies to accelerate exploration and development projects, particularly in jurisdictions with favourable mining regulations. Furthermore, investors are increasingly viewing gold as a safe haven amid global volatility, supporting demand across multiple sectors. Meanwhile, smaller exploration companies like NevGold stand to gain from both rising prices and successful drilling results.
NevGold Corp is a sponsor of Mugglehead news coverage
.
