Gold prices are soaring in the charts on Tuesday, trading around the $2,637 level. The XAU/USD charts have been up nearly double digits since the opening bell, raising close to 10 points in the day’s trade. The 0.33% surge in value comes after the Federal Reserve cut interest rates by 50 bps last week. Since then, the precious metal has remained in the green, attracting heavy bullish sentiments.
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Source: Investing.com
Retail investors, institutional funds, and central banks of developing countries are seeking the metal. Gold has risen close to 28% year-to-date, making it among the top gainers in the commodity markets. The precious metal has kickstarted a rally in the indices, and traders could ride the bull to reap profits.
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Gold Eyes $2,700 Next
Image Source: Watcher Guru
Since gold prices successfully breached the $2,600 mark, the precious metal is now eyeing a climb above the $2,700 level. The price target of $2,700 was first set by leading investment bank Goldman Sachs early this year. The bank had predicted that gold prices could reach $2,700 by the end of 2024. The forecast is turning out to be accurate, with gold prices only 2.4% away from the target.
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This makes the metal bullish as it achieves the price target set by leading global banks. While the target for 2024 remains at $2,700, analysts are confident that gold could reach $3,000 in 2025. The XAU/USD index needs to surge by another 10% from its current price of $2,637 to reach the $3,000 milestone.
“Gold could reach $3,000 per ounce by mid-2025,” predicted Aakash Doshi, Head of Commodities, North America at Citi Research. The surge will be “driven by US interest rate cuts, strong demand from exchange-traded funds and over-the-counter physical demand,” said Doshi to Reuters. Therefore, all signals for gold remain bullish, and traders can take entry positions accordingly.