Gold price forecast is having an incredible year, reaching new record highs. This morning, the price hit $2,640 per troy ounce, which is $110 more than the previous high set just five weeks ago. Carsten Fritsch, a commodity analyst at Commerzbank, highlights how gold is benefiting from the current economic conditions.
Why Gold Prices Are So High
Gold is known as a safe investment during uncertain times and periods of inflation. It tends to do well during periods of low interest rates. Fritsch explains that gold prices are not only rising in US dollars but also in other currencies like the euro, British pound, Swiss franc, Chinese renminbi, and Indian rupee.
Concerns About China’s Economy May Be Overstated
Some optimism surrounding China’s economic recovery has pushed gold prices higher, but Commerzbank believes this optimism may be exaggerated. The bank has now increased its forecast for the end-of-year gold price to $2,600 per troy ounce, up from $2,500. However, they expect this price might drop after a while.
Short-Term Increases, Long-Term Stability
In the short term, Commerzbank sees potential for gold prices to rise a bit more. However, these increases may not last. The bank expects the price to be around $2,600 per troy ounce by mid-2025. The Federal Reserve’s current outlook suggests no interest rate hikes until 2026, so Commerzbank also raised its forecast for the end of 2025 to $2,600, up from $2,550.
Conclusion
Gold has had a fantastic year, reaching new record prices and remaining a strong investment option. For more information and daily gold signals, visit Daily Gold Signal. You can also stay updated with daily gold updates.
