Gold price soars to new high, with $4,000 in sight
Gold prices soared to a new all-time high on Monday, as a looming US interest rate cut and political uncertainty across the globe buoyed demand for the safe-haven metal.Spot gold rallied as much as 1.6% for a new record of $3,949.71 per ounce, as it continues to build momentum towards the $4,000-an-ounce milestone.US gold futures also rose 1.6% to a high of $3,971.60 per ounce in New York.Click on chart for live prices.With Monday’s moves, gold has now risen nearly 50% so far this year, a record run underpinned by expectations of US rate cuts, sustained central bank purchases, resilient safe-haven demand and broad dollar weakness.Gold prices first broke the $3,000-per-ounce level for the first time in March, then $3,500 in late April. After months of consolidation, the yellow metal awakened again in August, the month preceding the Federal Reserve’s first rate cut. This led to another surge towards $3,800 in late September.$4,000 in sightWith a second rate cut expected this month, bullion’s momentum still has not waned, even after seven straight weeks of gains.Several major banks are predicting gold prices to eventually hit at least the $4,000 mark this year. Amongst those were HSBC, Bank of America and Deutsche Bank. UBS, in a note last week, revised its year-end price forecast to $4,200/oz., citing both fundamental and momentum-based reasons.Goldman Sachs sees more upside for gold on private interest“The fact that we’re so close to $4,000/oz. also suggests that some of the funds might be trying to push it up to get to that mark,” said Edward Meir, an analyst at Marex, in a Reuters note.A slew of political and economic concerns around the world, such as the resignation of France’s new prime minister, rising yields in Japan and an ongoing US government shutdown, is all contributing to gold’s latest rally, he added.Private investors piling into gold-backed exchange-traded funds have also contributed to the latest leg in the rally, with total holdings expanding the most in more than three years last month, according to Bloomberg data.(With files from Bloomberg and Reuters)Gold price soars amid record stock markets—are we heading for a bubble?Sponsored: Secure your wealth today — buy gold bullion directly through our trusted partner, Sprott Money.Weiter zum vollständigen Artikel bei Mining.com
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