Gold prices are rising, reaching over $2,500 an ounce, and experts believe the rally isn’t over yet. The Federal Reserve is expected to cut interest rates, making gold more attractive as an investment. Jerome Powell’s recent speech at Jackson Hole, where he hinted at rate cuts, boosted confidence in gold’s future.
Check out Forex gold trading tips that could help to make a deal
Gold has been one of the top-performing commodities this year, supported by central bank purchases and strong demand from Asia. Now, with the US dollar weakening and Treasury yields dropping, gold is becoming even more appealing to investors.
In 2024, spot gold prices have surged by over 20%. Major banks like Goldman Sachs predict prices could hit $2,700 an ounce. Hedge funds and investors are betting heavily on gold, with holdings in gold-backed ETFs increasing steadily.
However, there are some risks. High prices may reduce demand in Asia, and China’s central bank has paused its gold purchases. Despite this, Citigroup expects gold prices to keep rising, potentially reaching $3,000 by mid-2025, especially if the Fed cuts rates and geopolitical risks increase.
Check out: Unlocking gold futures: expert tips on key indicators and chart analysis
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