Gold futures (GCQ24) have recently surged to new highs, hitting $2,488 on July 17, thanks to surging hopes for Federal Reserve interest rate cuts. Cash gold (GCY00) has jumped 15.5% this year, outpacing the S&P 500 Index’s ($SPX) 14.5% returns.
Gold’s rally took a brief pause recently, but the stage is set for higher highs. According to the CME FedWatch Tool, there’s a 100% chance of a rate cut in September - and that means gold’s allure is growing. Lower rates are bullish for gold, a non-yielding asset, and ongoing geopolitical tensions are also pushing investors toward this safe haven. Analysts at Sprott, Citi, Goldman, and BofA have predicted gold prices moving all the way up to $3,000 against a supportive macro backdrop.
