Gold prices are on a roll as the XAU/USD index climbed to the $3,719 range on Monday. It spiked by 34 points in the indices with a day’s surge of 0.92%. The glittery metal has spiked nearly 42% in a year, delivering massive profits to traders.

Silver is the second-best gainer in the commodity markets this year, apart from gold. It has spiked close to 40% in a year, mirroring gold’s performance during the same timeframe. Both metals are showing no signs of weakness and are attracting bullish sentiments in the charts.

Gold Turns Bullish With Bigger Upside Potential

Analysts have long been predicting that gold could breach the $3,700 mark by the year’s end. Leading banks and strategists predict that gold could reach the $4,000 level in 2026. Traders are still bullish on both assets and are riding the wave of profits.

Central banks, retail investors, and institutional funds have been heavily accumulating gold for three years. Therefore, the precious metal has barely experienced a dip in price as demand soars. It is unlikely that the commodity will shrink in value anytime soon.

Most importantly, central banks have been aggressively buying tonnes of gold to diversify their reserves. There is a slow ending reliance on the US dollar and betting on the glittery metal as it’s a haven and a hedge against inflation. The commodity has outperformed the US stock market by a large margin in a year.

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The Dow Jones index has spiked 9% in a year, while the Nasdaq Composite surged 26%. On the other hand, the S&P 500 index shot up 16% in a year, and all of them are way behind gold, which spiked 42% in the same timeframe. Since traders are still open to taking an entry position in the commodity, the price of the metal is expected to soar.

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