Gold prices rose the most since August, after Goldman Sachs Group repeated its forecast that prices would reach $3,000 an ounce next year, and advised investors to “invest in gold.”
Bullion prices jumped 2% above $2,600 an ounce on Monday, after taking a hit in the wake of Donald Trump's presidential election victory, spurring a rise in the dollar, which weighed on commodities.
The bank included bullion among its top commodity picks for 2025, citing cuts in interest rates by the Federal Reserve, which reduce the opportunity costs of holding gold, and tariffs that underscore gold's role as a hedge against inflation, as well as steady demand from banks. Centrality.
Bullion prices fell about 6% from last month's record, while the dollar rose to a two-year high. Against this backdrop, hedge funds' bullish bets fell to their lowest level in three months, according to CFTC data.
However, Goldman analysts said that this sale provides an “attractive entry point to buy gold.”
Speaking on Bloomberg TV, Francisco Blanch, commodity strategist at Bank of America, said he expects prices to rise to $3,000 an ounce by next year, but warned of a decline to $2,500 an ounce in the near term, if… US inflationary pressures threatened the path of interest rate cuts.
“Gold was priced on a sharp cut in interest rates. If that doesn’t happen, it will be a bit volatile,” Blanche said.
For now, some Fed policymakers appear committed to monetary easing. On Friday, Austin Goolsbee of the Federal Reserve Bank of Chicago said that as long as inflation continues to fall toward the bank's 2% target, interest rates will be “much lower” over the next 12 to 18 months.
For her part, Susan Collins, President of the Federal Reserve Bank in Boston, said that cutting interest rates in December is still on the table.
Spot gold rose 1.8% to $2,608.84 an ounce by 6:17pm in London, bringing this year's gains to 26%. The Bloomberg Dollar Spot Index fell by 0.4%, and silver, platinum and palladium prices rose.
On the local level, the price of gold in Egypt rose during yesterday’s trading, supported by the recovery of the global gold price after the end of a wave of decline that continued during the past two weeks.
21 karat gold traded at the beginning of this week at the level of 3,550 pounds per gram, and succeeded in building sufficient momentum for the price to recover during today’s session. Gold opened today's session at the level of 3,585 pounds per gram, and is now trying to target the level of 3,600 pounds per gram, followed by the level of 3,650 pounds per gram.
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