The gold price has set another new record, surging past the US$3,450 ($5,362.66) per ounce mark, driven by risk aversion amid growing uncertainty, as reported by Trading Economics.
Gold has gained more than 30% this year where at the time of writing, the precious metal benchmark price currently sits at $5,420.86 per ounce, according to the ABC Bullion.
The latest record comes a day after US President, Donald Trump reiterated his criticism of US Federal Reserve Chair Jerome Powell, suggesting the possibility of removing him.
According to the BBC, the president called on Powell to cut interest rates “pre-emptively” to help boost the economy in a social media post.
As a result of Mr Trump’s remarks, concerns have been raised about the politicisation of US monetary policy, potentially undermining the Federal Reserve’s credibility and eroding investor confidence in the economy.
“This added to ongoing worries over global trade tensions — especially between the US and China,” according to data website, Trading Economics.
Discovery Alert reports that BMG President Yavon Blashik forecasts gold to reach US$4,000 per ounce by the end of 2025 — based on its current trajectory.
This price jump would represent a 20% growth from the current price levels.
“Gold’s fundamental properties — its rarity, universality, and 5,000-year history as a monetary asset — make continued price appreciation inevitable in today’s geopolitical climate,” Blashik says.
“The $4,000 target reflects systemic pressures rather than speculative enthusiasm.”
Write to Aaliyah Rogan at Mining.com.au
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