The price of gold broke through the $3,500 barrier on Sept. 2, notching yet another milestone in its shiny yellow belt.
Gold had passed $3,500 briefly in April, hitting $3,509 an ounce, a then record. But it’s currently trading well above that; at press time, the spot price was $3,564 an ounce.
“Gold didn’t tiptoe across the $3,500 threshold,” wrote trading news website FXStreet. “It stormed through it like a heavyweight breaking free of the ropes.”
Most analysts said economic uncertainty had once again caused investors to use gold as a “safe haven.”
Ricardo Evangelista, senior analyst at ActivTrades, told Reuters that the gold price has surged because of the “bearish dollar outlook underpinned by expectations of Fed cuts, investors distancing from U.S. assets, and tariff-related economic uncertainty.” On the BBC, Derren Nathan, head of equity research for Hargreaves Lansdown, attributed gold’s rise in part to President Trump’s “attempts to undermine the independence of the Federal Reserve.”
Many analysts have said they don’t think gold’s bull run will end anytime soon.
KCM Trade chief market analyst Tim Waterer told CNN that the “rally could extend to $3,600 and even beyond by year-end if the Fed follows through with multiple rate cuts and if a Russia-Ukraine peace deal remains elusive.”
Peter Grant, vice president and senior metals strategist at Zaner Metals, said in a Reuters story that gold could hit $4,000 in the first quarter of next year.
If that seems hard to believe, consider this: The new benchmark was reached only a year after gold first hit the $2,500 mark and less than six months after it crossed $3,000.
(Photo: Getty Images)
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