Gold prices rise in global uncertainty and central banks

Gold prices have soared, reaching unprecedented records in growing geopolitical uncertainty and central bank exercises. Wall Street analysts are revising their forecasts, with the latest forecast from Macquarie Group expecting metals to reach $3,500 in the third quarter. Read more about Yahoo Finance.

Also read: Recording gold inventory in the United States under the influence of tariffs

Recently, gold futures surged below $2,990 per ounce, amid escalating trade tensions and low inflation figures, both of which have raised speculation about possible Fed reserve adjustments. “Gold has surpassed our initial forecasts, prompting us to raise our third-quarter average price forecast to $3,150 per ounce, with a potential peak hitting $3,500,” said Marcus Garvey, head of commodity strategy at Macquarie.

The Trump administration’s dynamic tariff policies and evolving international relations have exacerbated uncertainty in global markets, thus driving the rise of gold as a safe haven asset. Similarly, BNP Paribas expects its price to exceed $3,100 per ounce by the second quarter, highlighting the continued bullish outlook for the gold market.

Year to date, gold has soared more than 11%, repeatedly setting new records since January. This rise is mainly attributed to the wider economic damage caused by the central bank’s aggressive buying strategies and tariff-related tensions. Institutional investors significantly increased physical gold shipments to New York vaults, aiming to circumvent potential tariffs and take advantage of price differences between major global markets.

Meanwhile, Goldman Sachs recently revised their year-end gold price forecast to $3,100, up from $2,890. These strategic adjustments to major financial institutions underscore Gold’s deep-rooted position in the cornerstone assets amidst ongoing economic volatility.

Source: Index Box Market Intelligence Platform