The gold price surpassed US4,900 ($7,160) an ounce on Thursday, 22 January, leading to yet another record high for this precious metal, on the back of rumours of the Federal Reserve cutting interest rates.
Currently sitting at U$4,955 per ounce, as reported by Trading Economics, gold is up over 20 points, an 0.40% growth in daily trading on 23 January.
Goldman Sachs Group analysts have raised their year-end gold price forecast to US$5,400 an ounce, up from a prior forecast of $4,900. The bank’s analysts note a number of factors driving their forecast, including continued strong central bank purchasing, private investor portfolio diversification, and overall global instability.
Bloomberg notes that gold has risen more than 70% in the past 12 months, continuously beating previous record highs. The latest critiques by US President Donald Trump on the US Federal Reserve has driven this instability further.
Recent instability has also been fueled by President Trump’s threats of a Greenland takeover. However, yesterday’s announcement of a framework agreement eased these concerns and led to the withdrawal of tariff threats.
Concurrently, silver has risen to a new peak as well, at approximately US$97 per ounce as of this reporting, achieving a near 3% growth in daily trading.
Write to Amy Rotman at Mining.com.au
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