Gold

’s slump over the past week, following a blistering rally, hasn’t dented the optimism over its longer-term prospects, as central banks and investors signal continued demand.

At the London Bullion Market Association conference in Kyoto — the industry’s biggest annual gathering — sector representatives forecast bullion near US$5,000 an ounce by next year’s meeting on Oct. 5, 2026. The survey, based on 106 responses, projects

prices

at US$4,980.30, about 27 per cent above current levels.

The precious metal has retreated to about US$3,900 after hitting an all-time high last week, as traders booked profits following months of gains driven by expectations of

U.S. Federal Reserve

rate cuts, persistent central bank buying, and a weaker

U.S. dollar

. Still, prices remain up about 50 per cent this year, supported by investors seeking protection from currency debasement and mounting fiscal pressures.

Adding to the bullish tone, South Korea’s central bank signalled it may boost gold reserves for the first time in more than a decade, joining a wave of government buying that has underpinned the market’s historic run.

“The Bank of Korea plans to consider additional gold purchases from a medium- to long-term perspective,” said Heung-Soon Jung, director of the bank’s Reserve Investment Division, at the LBMA event. The bank last added to its holdings in 2013.

The comments highlight how central banks have become increasingly active in global gold markets. Purchases by monetary authorities from China to Poland have been a key driver of prices over the past two years, even as retail investors and funds piled in.

Still, some analysts warned of a deeper correction. Central bank demand isn’t as strong as it was, John Reade, market strategist at the World Gold Council, said at the LBMA event. He cited conversations at the conference that suggested US$3,500 an ounce as a level that “would be healthy for the gold market, because it still would be a ridiculously high price.”

The broad bullish sentiment is also extended to other

precious metals

. Silver is forecast to hit US$59.10 an ounce within a year, about 27 per cent above current levels, while platinum and palladium are expected to post double-digit gains, according to the poll at the LBMA conference.

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Bloomberg.com