The price of Gold (GC=F) has climbed to a new ATH of $3,800, and Wall Street analysts suggest further highs are on the way. Gold futures rose 0.8% to trade near $3,805 per troy ounce, while bullion for immediate delivery traded near $3,780 per ounce. Wall Street sees further upside for the precious metal, with Goldman Sachs reiterating a forecast of $4,000 by the middle of next year.
“We think gold prices have further room to rally, as US real interest rates should fall further amid additional Federal Reserve easing and still elevated inflation,” Ulrike Hoffmann-Burchardi, chief investment officer at UBS Global Wealth Management, said on Tuesday morning. The strategist views the asset as an effective portfolio diversifier and hedge against political and economic risk.
Gold prices have been bolstering due to a variety of reasons. The volatile stance of the Federal Reserve and the weakening of the dollar are both playing a crucial role in strengthening the asset. In addition to this, gold is also being driven by central banks intent on stockpiling the metal at a rapid pace.
Other Wall Street Experts Bolster Gold Forecast
In addition, UBS predicts a valuation for Gold of $3,900 during the same time frame. The Swiss bank also revised its estimate for gold exchange-traded fund holdings, projecting levels to exceed 3,900 metric tons by the end of 2025, approaching the previous record of 3,915 tons set in October 2020. The bank highlighted geopolitical concerns and policy differences between the U.S. administration and the Federal Reserve as key factors boosting gold’s appeal, along with U.S. President Donald Trump’s stance favoring lower interest rates even further.
Gold is up more than 40% in price year to date, with the past three trading sessions marking new highs. According to Rashad Hajiyev, a leading metals expert on X, precious metals may soon enter into a distinctive parabolic rally. Gold, especially, is now gaining rapid momentum. It may end up hitting the $4K price mark within the next two weeks. “Gold is set to rally much higher over the coming years. But in the short term, it is eyeing $4k or higher.”
