Gold prices are surging to new heights, with the latest record of $2,640 per troy ounce reached this morning. This marks a $110 jump from the previous all-time high set just five weeks ago, according to Commerzbank commodity analyst Carsten Fritsch.
Inflation and Rate Cuts Drive Demand
Fritsch highlights that gold’s rise is fueled by its status as a store of value during periods of inflation and economic uncertainty, as well as its appeal as an interest-free investment when interest rates are declining. The rally isn’t confined to the U.S. dollar; gold prices are also at record levels in other major currencies, including the euro, British pound, Swiss franc, Chinese renminbi, and Indian rupee.
Revised Forecasts and Future Outlook
Given the metal’s strong performance, Commerzbank has adjusted its year-end forecast for gold prices to $2,600 per ounce, up from the previous estimate of $2,500. However, Fritsch cautions that while a short-term price increase is possible, it may not be sustainable.
Looking further ahead, Commerzbank maintains its mid-2025 forecast of $2,600 per ounce and has also revised its year-end 2025 target upward to $2,600 from $2,550, reflecting the U.S. Federal Reserve’s projected pause in rate hikes through 2026.
Gold’s momentum, driven by global economic conditions and falling interest rates, continues to set new records, but analysts warn of potential corrections in the near future.
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