Current Gold Price (Spot) Spot gold is hovering around $3,6401. Expectations of U.S. Rate Cuts
Markets are pricing in a very high probability of a 25 basis point cut at the Fed’s upcoming meeting, with some possibility of a larger 50 bps move. Weaker U.S. labor and inflation data has helped cement these expectations.
Indiatimes
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2. Weakening U.S. Dollar
A softer dollar makes gold more appealing, helping fuel the rally. This trend underpins its attractiveness as a non-yielding but safe asset.
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3. Central Bank Demand & Investor Inflows
Chinese central bank purchases are continuing (now in the 10th consecutive month), and global central bank acquisitions are expected to total roughly 900–950 metric tons in 2025. Additionally, gold ETFs like SPDR saw about $5.5 billion in inflows in August.
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4. Geopolitical Tensions & political risks
Uncertainty around Fed independence and broader political developments is prompting investors to shift into gold. Goldman Sachs warns that if Fed autonomy is compromised, gold could potentially reach $5,000 per ounce. More moderate forecasts still suggest $3,800–$4,000 by mid-2026.
Investopedia
Analyst Forecasts
ANZ Group raised its year-end forecast to $3,800, with a potential peak of $4,000 by June 2026.
Reuters
Goldman Sachs sees baseline levels of $3,700–$4,000 by mid-2026, with a possible surge to $5,000 if trust in U.S. policy erodes.
Investopedia
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Other analysts also largely echo the $3,800–$4,000 range as achievable before mid-2026.
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