Author：Currency Explorer

Despite unprecedented volatility in the precious metals market, a Canadian bank remains bullish on gold and silver, predicting prices will rise further by the end of the year.

On Wednesday, commodities analysts at the Canadian Imperial Bank of Commerce (CIBC) released their latest gold price forecast.They now expect the average market price to reach $6,000 per ounce this year, a significant upward revision from their October forecast of $4,500 per ounce.

The bank expects gold prices to remain in a broad upward trend.The average price will peak at $6,500 per ounce in 2027.In the latest forecast,The Canadian Imperial Bank of Commerce predicts that the average price of silver this year will be around US$105 per ounce, and will rise to US$120 per ounce next year.

Despite recent market volatility and a significant correction, analysts say,Demand drivers will remain in 2025.The Canadian bank specifically noted that geopolitical uncertainty will continue to support safe-haven demand. Meanwhile, analysts also expect further weakening of the US dollar to be a key factor supporting higher gold prices.

"As central banks and investors quietly reduce their holdings of US Treasuries in response to heightened uncertainty,"The depreciation of the US dollar is likely to continue.“We believe that interest rate cuts and the ongoing tensions between the Federal Reserve and the White House will put further pressure on the dollar. Furthermore, we believe Kevin Warsh will seek to shrink the Fed’s balance sheet in order to lower interest rates for ordinary people,” the analysts said.

CIBC points out that gold prices fell from record highs last week because US President Trump announced his nomination of Warsh to succeed Federal Reserve Chairman Powell.The market expects Warsh, a former Federal Reserve governor, to be able to maintain the central bank's political independence..

However, despite Warsh's long-standing reputation for supporting tighter monetary policy, the Canadian Imperial Bank of Commerce stated that...They believe that Trump's choice is actually "a dove in hawk's clothing".

“Wash’s stance appears to be more dovish than suggested by last week’s negative market reaction. He has consistently advocated for shrinking the Fed’s balance sheet, claiming it would suppress inflation and create a lower interest rate environment for ordinary people. Recently, he expressed support for Trump’s administration’s efficiency measures, noting that they would help moderate inflation and create room for rate cuts,” the analyst said. “In any case, we believe…”In 2026, any candidate can only lead the Federal Reserve to lower interest rates..

In addition to US monetary policy, the Canadian Imperial Bank of Commerce stated...A broader global trend of fiat currency devaluation will support global demand for gold.Analysts said:

"As U.S. Treasury bonds, the de facto safe-haven asset for decades, are no longer considered 'risk-free,' investors and central banks are looking for alternatives. But there are few options available. Most Western economies are facing debt-to-GDP ratios near historic highs, and most countries are leaning toward inflation rather than deflation to get out of trouble. Investor confidence in fiat currencies has been damaged, and gold has absorbed most of the safe-haven money."