Gold prices are trading at the $3,960 level on Thursday and is looking to reclaim the $4,000 spot. The precious metal saw massive sell-offs and profit-bookings this week after it went above $4,000. Despite it, its prices remain safe as an equal number of buyers are bullish on its prospects. The buyers are offsetting the profit-bookings, keeping it rangebound this week. The London Bullion Market Association (LBMA) published a survey projecting gold prices to reach $5,000 in 12 months.

The LBMA survey was conducted at the Global Precious Metals Conference, where delegates expected gold prices to rise to $4,980.30 an ounce. That’s close to a surge of 26% from its current value as the bullishness towards the glittery metal continues. The XAU/USD index has climbed more than 50% year-to-date and is among the top-performing commodities in the market.

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LBMA’s Survey Bullish on Gold

The LBMA’s survey indicates that taking an entry position now can deliver profits next year despite gold reaching new highs. It also expects the glittery metal to be the top-performing asset in the metals sector through 2026. The majority of institutions are bullish on their prospects and have been investing heavily. The tariffs and trade wars are among the reasons for the dramatic surge in value.

Wayne Gordon, Managing Director and Chief Investment Officer at UBS, said to the LBMA survey that clients holding gold have doubled this year. “I think we’ve had to upgrade, if I’m honest with myself, probably six times this year — and we came into the year thinking we were pretty aggressive,” Gordon said.

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Gold is seen as a safe haven during uncertainties and a hedge to safeguard investments. LBMA’s survey is not surprising as gold prices exceeded all expectations this year. It is most likely to continue the surge as retail investors, central banks, and institutional funds are after the metal.