Investors predict gold will reach new record highs within 24 months, driven by central bank buying and safe-haven demand. The price fell 2% to $4,075 per troy ounce on Wednesday amid expectations of further Federal Reserve rate hikes, but fund managers anticipate a sharp rebound. Central banks purchased about 63 tonnes of gold in September, the highest monthly level since November 2024, according to provisional World Gold Council data.
Gold previously hit a record high of over $5,500 per troy ounce in January before tumbling, though it remains at historically high levels. Charlotte Yonge of Troy Asset Management forecasts a new record within 12 to 18 months, citing gold as a hedge against worsening government finances and rising US debt. Paul Carne of Aon Investments expects record highs within two years, warning that weaponising the dollar could drive investors to alternatives like gold.
Peter Marrone of Allied Gold suggested markets may be on the front end of a financial crisis, with family offices diversifying from government bonds into bullion. Ian Cockerill of Endeavour Mining emphasized strong underpinning from macroeconomic factors and declining faith in fiat currencies. Suki Cooper of Standard Chartered noted continued strong central bank demand, though some sold gold this year to raise funds amid the US-Israeli war with Iran.
The People’s Bank of China continues to increase its gold reserves, which now stand at 9% of total reserves or about 2,410 tonnes.
Source: Financial Times Markets · Summarized by HeadlinesBriefing