en.Wedoany.com Reported - During the Asian trading session on April 8, international gold and silver prices surged rapidly. The NYMEX gold futures price reached $4,842.50 per ounce, with an intraday gain of 3.37%; silver futures reached $76.295 per ounce, with an intraday gain of 5.98%. This round of gains occurred after gold experienced a sharp correction in March. Year-to-date, the amplitude of gold price movements has exceeded 30%.
Multiple institutions maintain a bullish outlook on gold. Goldman Sachs analysts Lina Thomas and Daan Struyven noted in a report that although gold faces "tactical downside risks" in the short term, continued central bank purchases and the expectation of two interest rate cuts will still support prices. They forecast gold prices will resume their upward trend by the end of 2026, with a target of $5,400 per ounce. Goldman Sachs also predicts that central bank gold purchases in 2026 will remain at the historically high level of 60 tons per month, with a structural shift already observed in the gold-buying behavior of emerging market central banks. UBS strategist Joni Teves believes that speculative positioning has been cleared, outflows from gold ETFs are under control, and gold prices will reach new highs in 2026.
Central bank gold purchases are the core driver supporting the medium- to long-term upward trend in gold prices. Data released by the People's Bank of China shows that as of the end of March 2026, official gold reserves stood at 74.38 million ounces, an increase of 160,000 ounces compared to the end of February. This represents the largest single-month increase in nearly 13 months and marks the 17th consecutive month of gold reserve accumulation. Wang Qing, Chief Macro Analyst at Dongfang Jincheng, analyzed that the double-digit decline in international gold prices and the escalation of geopolitical risks in the Middle East are the direct reasons for the accelerated pace of central bank purchases. Currently, gold accounts for approximately 9.7% of China's official international reserves, significantly lower than the global average of around 15%, indicating that increasing holdings remains the general direction. According to World Gold Council data, sovereign gold purchases in January were concentrated in Asia and Eastern Europe. Bank Negara Malaysia increased its holdings for the first time since 2018, and the Bank of Korea also announced it would allocate gold reserves for the first time through overseas-listed physical gold ETFs.
From the supply side, rising gold prices face constraints from continuously increasing mining costs. According to mining company annual reports, costs for China's major gold producers generally rose in 2025: Zijin Mining Group's unit cost for mined gold was 275.2 yuan/gram, a year-on-year increase of 19.3%; Chifeng Jilong Gold Mining's unit operating cost was 326.3 yuan/gram, a year-on-year increase of 17.3%. Factors such as declining ore grades at some mines, increasing strip ratios for open-pit mines, and the simultaneous increase in royalties based on gold prices have collectively pushed up the marginal cost line for mined gold, limiting the downside for gold prices from the supply side.
Regarding silver, its price rose nearly 6% intraday, outperforming gold. UBS stated in its latest report that silver tends to outperform gold during periods of rising precious metal prices, but silver's industrial properties make it susceptible to the impact of slowing global economic growth. The gold-to-silver ratio is likely to bottom out in the range of 50 to 60 in the subsequent period. High gold prices are now being transmitted to mining companies. Many gold miners achieved record-high performance in 2025, with production expansion and cost control becoming key variables for future competition.
This article is compiled by Wedoany. All AI citations must indicate the source as "Wedoany". If there is any infringement or other issues, please notify us promptly, and we will modify or delete it accordingly. Email: news@wedoany.com
