Gold Price Forecast: Veteran Strategist Predicts 

You’re looking for insights into gold price forecasts from a veteran strategist. One prominent name that has been frequently cited in recent market analysis is George Milling-Stanley, the Chief Gold Strategist for State Street Global Advisors. He’s known for his extensive experience in the gold market and for having helped develop GLD, the world’s first gold-backed ETF.

Here’s a summary of his recent predictions and the factors he highlights:

Key Predictions from George Milling-Stanley:

New Floor Above $3,000: Milling-Stanley believes that gold has established a new price floor somewhere above $3,000 an ounce. This is a significant jump from the previous floor of $2,000 an ounce seen last year (2024).
Continued Record Highs: He predicts that record gold price levels will be broken regularly through the end of 2025.
Trading Range and Potential Upside: While he wouldn’t be surprised to see gold consolidate a bit in the $3,000 to $3,500 range for a while, his bullish case suggests it could break past the $3,500 resistance and potentially trade as high as $3,900 an ounce. This would represent a significant gain on top of the already strong performance in 2024 and early 2025.
Preference for Physical Gold: He favors owning the physical metal over gold miners, particularly due to concerns about market swings and the historical underperformance of miners during market downturns.
Factors Influencing His Forecast:

Geopolitical Turbulence: Milling-Stanley emphasizes that ongoing geopolitical instability is a major driver for gold prices. Gold historically performs well during periods of geopolitical turmoil, acting as a safe haven asset.
Protective Attributes: Investors are increasingly looking to gold for its protective attributes against economic uncertainty and market volatility, rather than solely for quick profits.
Dollar Weakness: A weaker U.S. dollar tends to support gold prices, as gold becomes comparatively less expensive for buyers using other currencies.
Inflation (Conditional): He notes that gold only serves as a true inflation hedge when the economy is experiencing “sustained high inflation,” which he defines as two or more years of persistent price rises of 5% or more. While inflation has been a factor, he doesn’t see it as the primary driver for gold’s current run in the same way.
Central Bank Buying: Although not explicitly stated as a direct part of Milling-Stanley’s immediate forecast, it’s widely recognized by analysts (including those at Goldman Sachs) that strong multi-year demand from central banks, particularly from emerging economies diversifying away from the U.S. dollar, is a significant long-term tailwind for gold.
ETF Investor Interest: Alongside central bank buying, the increasing holdings of gold by ETF investors in anticipation of interest rate cuts and amid recession concerns are also contributing to the rally.
Current Market Context (as of mid-June 2025):

Recent gold price movements show a strong surge, with gold climbing past $3,400 and nearing its all-time high of around $3,500. This is largely attributed to:

Escalating Geopolitical Tensions: Particularly the ongoing conflict between Israel and Iran, which fuels safe-haven demand.
Softer U.S. Inflation Data and Rate-Cut Expectations: Weak inflation data has boosted hopes for Federal Reserve rate cuts, making non-yielding assets like gold more attractive.
It’s important to remember that while veteran strategists offer valuable insights based on their experience, gold prices are subject to numerous dynamic factors, and all forecasts carry inherent risks.