Cassiar Gold Corp. (TSXV: GLDC, OTCQX: CGLCF)
Revitalizing the Cassiar Gold District in British Columbia, Canada
Amid escalating geopolitical conflicts, intensifying trade frictions, and expectations of Federal Reserve rate cuts, global investment banks have recently intensified upward revisions to their price forecasts for precious metals, with bullish sentiment toward gold and silver continuing to surge.
In its latest report, UBS Group’s Chief Investment Office highlighted gold’s role as a defensive asset, benefiting from heightened geopolitical and trade tensions, as well as renewed market expectations for Fed rate cuts. The report specifically noted that recent U.S. military escalations against Houthi forces in Yemen have amplified geopolitical uncertainties, while U.S. Treasury Secretary’s characterization of the economy as being in a “transition phase” has reinforced concerns over recession risks.
Consequently, UBS raised its gold price target from $3,000 to $3,200 per ounce and recommended investors maintain a 5% gold allocation in USD-balanced portfolios to optimize long-term risk diversification.
In a similar move, ANZ Bank updated its short-term gold forecasts in a Tuesday report, lifting its 0-3 month target to $3,100/oz and setting a 6-month target at $3,200/oz. The bank emphasized that sustained central bank purchases, expectations for looser monetary policies, and liquidity tightness in spot markets triggered by trade tariffs form the core drivers of gold’s rally. Analysts pointed out that U.S. import tariffs have diverted London spot market supplies to domestic markets, sparking arbitrage trading and widening the spread between COMEX futures and London spot prices.
ANZ further noted that transatlantic gold flows will continue impacting silver prices, projecting the white metal to trade between $34 and $36 per ounce.
As gold breaches the historic $3,000/oz threshold, silver’s catch-up rally is drawing institutional attention.
Commerzbank commodity analyst Carsten Fritsch raised his year-end silver price target from $33 to $35/oz in a recent report, predicting an imminent breakout above the key $34 resistance level. He highlighted that silver has faced a structural supply deficit for four consecutive years, supported by record industrial demand and sustained investment inflows. Additionally, the gold-to-silver ratio is expected to decline to 81, nearing its five-year average, signaling accelerating value recovery for silver relative to gold.
Despite the metals’ strong upward momentum, some banks urge caution.
Commerzbank warned that gold’s steep climb from $2,000 to $3,000 in under five years may have overextended its momentum. Potential risks include smaller-than-expected Fed rate cuts or suppressed physical demand in key markets like China and India due to elevated prices. However, analysts acknowledge that persistent geopolitical risks and policy uncertainties could drive further short-term gains through ETF inflows and speculative buying.
Spot gold traded at $3,026.54/oz, up 0.85% intraday, while silver edged 0.06% higher to $33.883/oz. Whether the metals can consolidate at current levels will test the sustainability of this safe-haven frenzy.
