Seven major financial institutions, including JPMorgan Chase and Bank of America, expect gold to reach new highs by 2025.
They believe the Federal Reserve’s interest rate cuts and increased gold purchases by central banks will spur a rally.
Banks believe that retail investors flocking to gold exchange-traded funds (ETFs) will further boost prices. JPMorgan analysts stress that while demand from central banks and physical buying by China have supported prices in recent years, the key to a sustained rally lies in investor flows through ETFs.
Goldman Sachs predicts that more investors will turn to gold to protect against economic risks. Goldman analysts believe 33% of the projected price rise will come from ETF demand and the Fed’s interest rate cuts, while 67% will be fueled by central bank purchases. They expect gold to reach $2,900 early next year and target $2,973 by 2025.
Other forecasts suggest gold could rise even further. JPMorgan sees a potential peak of $2,850 by the end of 2024, while Bank of America and Citi predict prices could reach $3,000 by 2025. Macquarie expects gold to reach $2,600 in early 2024, with a possible $3,000 by the end of 2025.
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