Keep an eye on everything gold – stocks, ETFs, physical gold.
The value of gold just crossed $2,200, and could easily see $2,500 near term
For one, safe-haven demand for gold continues to be supportive amid geopolitical uncertainty with ongoing wars and the upcoming US election.
Helping, China’s central bank just added even more gold, supporting the precious metal’s surge to record higher. In fact, in February, China added another 390,000 troy ounces of gold, raising its total holdings to 72.58 million troy ounces.
“Central banks bought 1,037 tonnes of gold last year, just shy of the all-time high of 2022, as shown by data from the World Gold Council, as reserve diversification and geopolitical concerns pushed central banks to increase their allocation towards safe assets,” added ING.com.
Now, according to Goldman Sachs, gold could push even higher. The Fed meeting “reinforced the market’s (and ours) expectations that three cuts are likely this year, lending renewed support to gold to test and surpass March’s earlier record high,” they said, as quoted by Yahoo Finance. The firm also upgraded their 2024 gold forecast to $2,300 by the end of the year.
According to RJO Futures, “Closer to the summer, you’re going to see gold go higher just with the expectation of rate cuts, unless the Fed changes stance or makes some announcement that they’re taking cuts off the table, which I don’t see them doing at this point,” says Reuters.
Again, keep an eye on everything gold. Prices could move even higher.
