Wall Road retains pushing up its already bullish calls on gold as the valuable steel climbs to new highs.
Gold (GC=F) futures touched their seventeenth file of the yr on Thursday, climbing north of $3,070 after President Trump’s auto tariff announcement stoked additional fears of an escalating commerce struggle. A transfer decrease within the US greenback (DX-Y.NYB) index additionally helped drive costs larger.
As of 4:06:14 AM EDT. Market Open.
Earlier this week, analysts at Financial institution of America raised their worth goal on gold to $3,500 per ounce over the approaching 18 months from $3,000 beforehand. The brand new goal is predicated on the belief that investments enhance 10% by extra shopping for from China and central banks and continued purchases of bodily backed ETFs.
“Uncertainty round Trump administration commerce insurance policies might proceed to push the USD decrease, additional supporting gold costs near-term. In our view, a broad rebalancing of America’s twin deficits might be bullish gold too,” wrote the analysts.
A “confluence of things, principally pushed by the Trump administration’s financial coverage combine, have pushed buyers to extend their allocations to the yellow steel,” the analysts wrote.
BofA’s name follows the same forecast from Macquarie Group, which lately predicted the valuable steel will contact $3,500 within the third quarter of this yr.
The valuable steel’s greater than 15% rally year-to-date has even prompted JPMorgan analysts to query whether or not a worth of $4,000 is a risk.
The agency’s researchers famous the commodity’s worth transfer from $2,500 to $3,000 occurred in simply 210 days, considerably sooner than earlier $500 increments, which have averaged over 1,700 days.
JPMorgan analysts requested in a consumer word on Wednesday, “With every $1,000 part taking about two-thirds much less time than the earlier one, and contemplating the regulation of diminishing returns alongside buyers’ attraction for spherical numbers, might the $4,000 mark be simply across the nook?”
The analysts mentioned the freezing of Russian international belongings following the Ukraine struggle has “triggered a structural change within the demand for gold.” Final yr, demand for the valuable steel reached an all-time excessive as central financial institution purchases accelerated.
“Heading into 2025, gold remained our prime bullish decide for a 3rd consecutive yr in a row,” the analysts wrote.
Ines Ferre is a senior enterprise reporter for Yahoo Finance. Comply with her on X at @ines_ferre.
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