Global central bank buying, simmering geopolitical tensions, and revived expectations for Fed rate cuts by year-end have all driven gold prices higher, thanks to its reputation as a safe haven investment.
June-dated gold futures (GCM24) rose to a record high of $2,448.80 an ounce on April 12 before paring some gains, while spot gold has gained 16.2% over the past year. Analysts are highly bullish on the future of gold prices, with Citigroup (C) analysts forecasting a $3,000 per ounce target for the precious metal over the next six to 18 months. Meanwhile, Goldman Sachs (GS) analysts referred to the gold market as an "unshakeable bull market" and increased its price target for the yellow metal from $2,300 to $2,700 per ounce by the end of the year.
