Gold prices are approaching a new record and are on track for an eighth straight weekly gain, buoyed by safe-haven demand amid geopolitical tensions and concerns about the global economy.

Gold Hits New Peak, Investors Rush to Buy

Spot gold is currently trading around $2,940 an ounce, up 2% this week. The increase comes after #Walmart – the world’s largest retailer – reported disappointing results and warned of uncertainties in consumer behavior and the global economy.

Concerns about global politics have also contributed to the rise in gold prices. President Donald Trump may withdraw US support for Ukraine as he prepares to meet with Russian President #VladimirPutin to negotiate an end to the war. This risks causing a rift with Kyiv and European allies, causing investors to flock to gold as a safe haven.

Gold Price Forecast Will Continue To Increase Strongly

Gold has surged 27% in 2024, setting a record as investors fret over unpredictable trade and geopolitical policies from the government. Recognizing this trend, Goldman Sachs has just raised its year-end gold price forecast to $3,100/ounce, citing continued strong buying by central banks.

In addition, the amount of gold held in ETFs has also increased to its highest level in more than a year, showing that large cash flows are still pouring into gold.

US May Not Revalue Gold Reserves

Meanwhile, US Treasury Secretary Scott Bessent has dismissed rumors that the government will revalue its gold reserves. Bloomberg previously reported the possibility, but Bessent said it was not a serious plan by Trump’s economic advisers.

The Precious Metals Market is Exciting

In addition to gold, other precious metals also recorded changes:

  • Silver is currently trading below $33 an ounce, up more than 2% this week.

  • Platinum and palladium were little changed.

Despite the hot gold market, the Bloomberg Dollar Spot Index was nearly flat and is set to end the week with its fifth decline in six weeks.

Conclude

Gold prices continue to rise sharply as investors become increasingly concerned about the global economic and political situation. If this trend continues, gold could soon hit the forecasted $3,100/ounce level this year. 🚀