The price of gold has shot up over the past week, and many forecasters believe it will soon top its record price.
At midday on Wednesday, the yellow metal’s spot price was $2,047 an ounce—well over the $2,000 benchmark. It was the third time this year that gold has crossed $2,000.
Gold reached its all-time high, $2,067, in August 2020, during the COVID-19 pandemic.
Ewa Manthey, commodities strategist at Dutch bank ING, told the Financial Times that the Israel–Hamas war has likely contributed to the price increase, as gold is typically considered a “safe haven” asset.
“Although the risk of the conflict in the Middle East seems to be contained, at least for now, that will keep being supportive for the gold price,” Manthey said.
But in a recent note, investment bank Goldman Sachs pointed out other reasons that “gold’s shine is returning.”
“The potential upside in gold prices will be closely tied to U.S. real rates and dollar moves, but we also expect persistent strong consumer demand from China and India, alongside central bank buying to offset downward pressures from upside growth surprises and rate cut repricing,” the investment bank said, according to CNBC.
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