Gold Continues to Break Records
In a year marked by economic tumult, gold futures shattered yet another record on Friday, marking the 34th time the precious metal has done so. Analysts point to recent market behavior as a signal of a fresh upswing in gold prices, attributed to monetary easing by major central banks and the tense U.S. presidential election.
The Path to $3,000
Forecasts paint a bullish picture for gold’s trajectory, with experts predicting a possible surge to $3,000 per ounce by mid-2025. Factors such as U.S. interest rate cuts, robust demand from exchange traded funds, and physical demand in over-the-counter markets are cited as key drivers behind this optimistic outlook.
Market Speculation and Positioning
Speculation is mounting as the possibility of gold hitting the $3,000 mark gains traction. Analysts are closely monitoring economic indicators for signs of growth risks and labor market weakness that could propel gold prices higher. Recent market movements suggest that a 50-basis-point rate cut in the U.S. may be on the horizon, serving as a potential catalyst for gold’s ascent.
Industry Insights and Projections
Industry experts, such as those at Macquarie, have revised their gold price forecasts upwards, projecting an average cyclical peak in the first quarter of the upcoming year at $2,600 per ounce, with the potential for an upward spike towards the coveted $3,000 level. Analysts emphasize the likelihood of achieving this milestone, especially in the event of political unrest post-U.S. elections.
Record Highs and Momentum
The gold market remained bullish, with front-month Comex gold for September delivery closing at an all-time high of $2,581.30 per ounce. Silver prices also surged, reaching $30.699 per ounce, the highest closing value since July. The momentum leading up to the expected rate cut in the U.S. has been a key factor driving gold prices, according to World Gold Council strategist Joe Cavatoni.