Analysts attribute the gains to trade friction between the US and China, including expanded rare-earth export controls and reciprocal port fees, alongside a looming US federal government shutdown.
Darshan Desai, CEO of Aspect Bullion & Refinery, said, “Expectations of additional Fed rate cuts, combined with ongoing geopolitical risks, are keeping gold elevated. Futures markets now anticipate larger cuts in October or December, which could further support prices.”
Sandip Raichura, CEO of Retail Broking & Distribution at PL Capital, added, “China’s strong gold purchases, continued ETF inflows, and central bank acquisitions have reinforced market confidence. Current conditions could mark the start of a historical move, though corrections may occur.”Investor appetite remains strong, with SPDR Gold Trust holdings rising to 1,022.60 tons, their highest since July 2022. Survey data from the World Gold Council shows 95% of central banks plan to increase gold holdings over the next year.
Analysts expect gold prices to maintain an upward trajectory, with ANZ projecting $4,400 per ounce by year-end, while PL Capital sees potential for $4,800 an ounce if support levels hold.
Experts recommend a minimum 5% portfolio allocation to gold for long-term stability amid market uncertainties.
–With Reuters inputs
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