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Gold Market Soars Amid Rate Cut Hopes and Geopolitical Tensions

  • Luciano Duque
  • Oct 4, 2024
  • 1 min read

In August 2024, gold prices surged past $2,500/oz, driven by a combination of economic and geopolitical factors. According to S&P Global’s Gold Commodity Briefing Service (CBS), the market was buoyed by expectations that the U.S. Federal Reserve would cut interest rates in September, following a speech by Fed Chair Jerome Powell. Cooling inflation and fears of a recession added to the optimism for rate cuts, strengthening gold’s appeal as a safe-haven investment.


Heightened geopolitical tensions, particularly due to the escalating Israel-Hamas conflict, further pushed investors toward gold, seen as a refuge in uncertain times. Additionally, gold-backed exchange-traded funds (ETFs) saw significant inflows globally, with India leading the demand in July, although China's demand slowed.


S&P Global forecasts a continued uptrend for gold, predicting an average price of $2,450/oz for Q3 2024 and $2,525/oz by the year's end, with ongoing uncertainty from global conflicts and the U.S. presidential election fueling demand. Looking ahead, gold prices are expected to average $2,550/oz in 2025, as economic and political uncertainties persist.


Gold remains a critical asset for those seeking stability in a volatile economic landscape. Keep an eye on the evolving factors driving this precious metal’s price to new peaks.


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