Gold bars [AFP Yonhap News]

Market experts forecast that the increase in international gold prices will significantly slow down compared to last year, with a projected rise of 7% this year.

According to the British daily Financial Times (FT) on the 3rd (local time), the average forecast for gold prices at the end of this year among experts from 11 financial firms was $4,610 per ounce. While the rate of increase is expected to slow considerably from last year's 64%, gold prices are still anticipated to break historical highs this year.

Expectations for gold prices at the end of the year varied significantly by institution, ranging from a high of $5,400 per ounce to a low of $3,500.

Experts cited the continued purchase of gold by central banks in emerging markets and a preference for safe-haven assets as positive factors, similar to last year.

Nicky Shiels, an analyst at MKS PAMP, who forecasts $5,400, stated, "We are just at the beginning of a (currency) depreciation cycle." This indicates that investment is flowing into gold as a hedge against the depreciation of the US dollar, which has fallen in value over the past year.

Lina Thomas, an analyst at Goldman Sachs, who expects $4,900, pointed to the trend of investment diversification as a positive factor. She noted that the proportion of investment in gold remains low, estimating that a 0.01 percentage point increase in gold investment by US investors would lead to a 1.4% rise in gold prices.

Peter Taylor, Head of Commodities Strategy at Macquarie Group, who forecasts a slightly lower price of $4,200 compared to the end of last year, pointed out that gold prices are moving according to investor sentiment rather than fundamental supply and demand factors, making forecasting difficult. He expects gold prices to stabilize in the fourth quarter of next year as macroeconomic factors become more stable.

Lona O'Connell, an analyst at StoneX, commented, "The positive factors for price increases have already been fully priced in," and predicted that gold prices could fall to $3,500 due to market saturation.

Bernard Dadaş, of Natixis, who forecasts $4,200, said, "At the current price level, a decrease in jewelry demand is already evident, and central bank demand is also slowing down," adding, "This year will be a year of price stability."