The price of gold futures passed the psychologically important $2,500 mark for the first time on Friday, setting yet another record for the yellow metal.
The price of gold futures briefly hit $2,522 an ounce on Friday, before retreating.
At press time on Monday, the spot price of gold was $2,405 per ounce.
The newest record came as analysts at Morgan Stanley forecast that the gold price could reach $2,600 by the end of the year, reported Bloomberg. Morgan Stanley said the surge has been caused mostly by increased buying by central banks, particularly China’s.
However, it added, possible rate cuts by the Federal Reserve could also give bullion a boost.
“While U.S. recession fears are rising, our economists still see a soft landing with a stronger Fed reaction if the data turns weaker, either of which should support investor gold inflows,” said a note from analysts led by Amy Gower, Morgan Stanley’s head of metals and mining commodity strategy.
(Photo: Getty Images)
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