Lee writes in her Feb 12 report: “Central banks have also been consistent buyers of gold, reinforcing the view that gold is increasingly a key reserve asset. While this has generated a lot of interest for gold and gold-related proxies, we advocate caution as gold has already rallied from less than US$2,000 in early 2024 to US$5,000 now, more than doubling in the last two years. At this stage, it is prudent to assess one’s exposure and risks, as the risk-reward ratio is no longer as attractive as two to three years ago.”
With a year-to-date (ytd) gain of 18%, gold prices soared to a record high of US$5,595.47 ($7,056.03) per ounce late January this year, topping off 2025’s 65% gain.
OCBC Group Research (OCBC) analyst Carmen Lee notes that gold demand continues to persist as global uncertainty including geopolitical risks continue to support diversification into other assets. She points to a Jan 27 OCBC report titled “Precious Metals Focus: Gold – Revisiting forecast” which projects gold to reach a price of US$5,600 per ounce.
