Demand from central banks and investors strengthened the position of gold as a protective property.
Gold prices continue to grow a record against the rear of expectations of reduction in the US Federal Reserve System rates and the intensifying demands of investors and central banks. It reports about it Reuters On Wednesday, September 3.
Analysts foretold that the price of spawning gold, which reached a record of $ 3,527.5 per ounce, could change within $ 3,600- $ 3,900 in a short and medium term, while in 2026 potential to reach $ 4,000 per ounce, if economic and geopolitical uncertainty.
This year, gold has increased by more than 34%. The average forecasts for 2025 prices continue to grow: from $ 2,756 in January to $ 3,065 in April and $ 3,220 in July, according to a Reuters survey.
Support for prices is provided by a weak dollar, the expectations of a reduction in Fed rates, the removal of investors from American ownership and economic uncertainty related to tariffs. In addition, Donald Trump’s political statements and the dangers of Fed’s freedom have contributed to the further purchase of gold.
“Gold is supported by a negative forecast for the dollar, based on the expectations of deductions of Fed bets, the flow of investors from American ownership and uncertainty due to tariffs,” Ricardo Evangelist Senior Analyst explained to activtrades.
Demand growth is also affected by geopolitical stress in the Middle East and between Russia and Ukraine, as well as the active purchases of central banks, especially in developing countries. In particular, in July, the Central Bank of China for the ninth month in a row has increased gold reserves.
“The strongest factor is possible to interfere with the Fed work and doubt about the status of the dollar as a protective possession,” said Julius Baer Analyst Karsten Menke.
According to the World Gold Council, the Central Banks plans to increase the part of gold in reserves and reduce dollar assets over the next five years.
“A combination of increasing gold prices and accumulation of central banks has led to a sharp increase in its part in reserves,” said Deutsche Bank’s analyst with precious metals, Michael HSU.
As reported, gold became the second most popular owner in the international World Central Banks reserves in 2024, which exceeded the Euro.
The dollar played position after a five -day collapse
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Source: korrespondent
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