Gold prices touched a fresh record, driven by renewed interest from investors seeking a safe-haven asset amidst global uncertainty. The metal surged to $2,956.19 an ounce on Monday, its highest level since Thursday’s peak. This marks the longest eight-week price rise since 2020.
Investors are flocking to gold-backed exchange-traded funds (ETFs), which saw their biggest net inflows since 2022 last week. The demand is largely driven by concerns over President Donald Trump’s trade and geopolitical agendas, leading investors to seek a stable haven asset.
Goldman Sachs has raised its year-end target for the metal to $3,100, citing central-bank buying as a key driver of growth, along with expanding ETFs. A weaker dollar and lower borrowing costs typically benefit gold, making it an attractive option for investors seeking safe-haven assets.
The Federal Reserve’s preferred inflation metric is expected to cool this week, but policymakers remain cautious about lowering interest rates further due to glacial progress in taming price pressures. This has led traders to expect a first rate cut in 2025, possibly in July rather than September.
As of 12:49 p.m. New York time, the Bloomberg Dollar Spot Index was little changed, with spot gold up 0.2% at $2,942.88 an ounce. Other precious metals, such as silver and platinum, posted modest declines, while palladium fell 2.6%.
Source: https://finance.yahoo.com/news/gold-holds-near-record-high-001624548.html