Gold’s status as a safe-haven asset continues to strengthen, with analysts from Macquarie Group predicting the precious metal could surge to an all-time high of $3,500 per ounce by the third quarter of the year.
Gold Price Forecast: Could It Reach $3,500/oz?
According to a report led by Marcus Garvey, Macquarie analysts estimate that gold could average around $3,150 per ounce during Q3. As of Thursday night, gold was trading at approximately $2,940 per ounce, with further gains anticipated due to growing concerns over a ballooning US deficit.
Gold’s Rally Fueled by Inflation and Geopolitical Tensions
So far, gold prices have climbed 12% in 2024, largely fueled by geopolitical uncertainties and economic policies under former US President Donald Trump, particularly his aggressive tariff measures. Analysts warn that a worsening US budget deficit could accelerate inflation, making gold an attractive hedge against economic instability.
“We view gold’s price strength to date, and our expectation for it to continue, as primarily being driven by investors’ and official institutions’ greater willingness to pay for its lack of credit or counterparty risk,” Macquarie’s analysts stated.
ETF Demand and Physical Gold Holdings Support Growth
There is still “ample scope” for gold-backed exchange-traded funds (ETFs) to increase their holdings, which could further boost prices. Additionally, strong demand from the physical gold market—including jewellery, bars, coins, and industrial use—has remained steady despite elevated prices.
Wall Street’s Bullish Outlook on Gold
Leading financial institutions have adjusted their gold price forecasts to reflect the ongoing rally. Last month, Goldman Sachs raised its year-end gold price target to $3,100 per ounce. Meanwhile, Citigroup projected in February that gold could reach $3,000 per ounce within three months.
What’s Next for Gold Prices?
With inflation concerns, economic instability, and increased investor demand, gold prices could continue their upward trajectory. Analysts will closely monitor Federal Reserve policy moves, geopolitical developments, and global market sentiment to determine whether gold can break through the $3,500/oz mark.
