Metals Focus Analyst Sees Gold Consolidating as Other Assets Compete

Gold’s recent pause reflects competition for investor capital from stocks, cryptocurrencies and other assets, while some institutions return when prices fall toward $4,000 an ounce, Matthew Piggott, director of gold and silver at Metals Focus, said.

Piggott views the market as consolidating rather than entering a bear market. His account of institutional interest near $4,000 describes buying behavior when prices have fallen toward that level, not a fixed threshold for gold.

Central banks have also helped steady the market, he said. “So we've had kind of a floor established, and central banks have been a big part of that too,” Piggott said.

Equities, cryptocurrencies, energy and other commodities are competing with gold for investment capital. Higher bond yields have made gold, which pays no interest, less attractive relative to interest-paying assets.

Metals Focus projects an average gold price of $5,330 an ounce in 2027, up about 16% from its $4,600 projection for 2026. Its forecast puts the average at $5,600 in the fourth quarter of 2027, with prices potentially approaching $6,000.

For now, Piggott sees inflation, energy prices and monetary-policy concerns as pressures on the market. He said easing inflation pressure would depend in part on energy prices calming down.