Gold prices hit a record high of $2,592 on Wednesday after the Federal Reserve announced a 50 bps interest rate cut. The precious metal attracts heavy bullish sentiments and is up nearly 30 points in the day’s trade. It surged almost 2% on Thursday and is gearing up to climb above the $2,600 level next.
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The price rise has made the commodity the most sought-after asset in the markets. Retail investors, institutional funds, and central banks accumulate assets and diversify their portfolios heavily. This development is making the precious metal hit new highs every month in 2024.
However, a leading commodity strategist has forecasted a bullish price prediction for gold. According to the prediction, gold prices could breach the $3,000 mark much sooner than expected.
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Gold Gets a ‘Buy’ Call: Revised Target of $3,000
Aakash Doshi, Head of Commodities, North America at Citi Research, predicted that gold prices could reach $3,000 in mid-2025. That’s an uptick and return on investment (ROI) of approximately 16% from today’s price of $2,588. Therefore, according to the Citi analyst, an investment of $10,000 in gold could turn into $11,500 during mid-2025.
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He also predicted that the precious metal prices could trade above $2,600 by the end of 2024. “Gold could reach $3,000 per ounce by mid-2025 and $2,600 by the end of 2024 driven by US interest rate cuts, strong demand from exchange-traded funds and over-the-counter physical demand,” said Doshi to Reuters.
He is not the only analyst who predicts gold prices could climb above $3,000 in 2025. Many other strategists have forecasted a bullish thesis for the glittery metal. It is now among the top-performing assets in the commodity markets, with no signs of slowing down. Its counterpart, the US dollar, and oil prices dipped in value in Q3 of 2024.