Gold Hits New Record High
Precious metals markets witnessed another historic surge on Tuesday, with the price of gold hitting a record high of $4,179 per ounce, as investors flocked to safe havens to escape the uncertainty gripping global markets.
Prices took off, supported by supportive fundamental indicators, to achieve this historic high.
However, the rapid gain pushed the yellow metal into a corrective wave, causing it to fall back to the $4,100 per ounce area, a reminder of the volatility of markets even in the strongest uptrends.
Forward-Looking Outlook: $5,000 Levels on the Horizon
This rally doesn't appear to be the end of the road, as Bank of America Global analysts believe there is still room for further gains, predicting that 2026 will see the price reach $5,000 per ounce.
The same report also predicted a parallel rise for silver, reaching $65 per ounce.
What are the current drivers of gold's rise?
Analysts agree that a combination of factors are converging to push gold to these levels:
- Renewed trade tensions:
Former US President Trump reignited the trade war with China, threatening to impose new tariffs and export controls, to which Beijing responded with a pledge of countermeasures, threatening to disrupt global trade once again.
- Recession and shutdown fears:
Investors remain concerned about the repercussions of the prolonged US government shutdown, which is beginning to negatively impact economic performance, according to Treasury Secretary Scott Besant.
- Interest rate cut expectations:
The market is eagerly awaiting Federal Reserve Chairman Jerome Powell's remarks today, seeking clearer signals on the timing and pace of US interest rate cuts.
Market expectations currently indicate a 97% probability of a 25 basis point cut in October.
