Gold price hits a new high again! Morgan Stanley and UBS Group AG are both bullish: the uptrend will continue until 2025
Gold price hits a new high again, JPMorgan Chase and UBS Group AG predict that the gold price will continue to rise until 2025, due to funds flowing into gold ETFs and expectations of central bank interest rate cuts. Gold futures rose slightly to $2681.3 per ounce. Analysts point out that strong physical demand and the upcoming interest rate cut cycle will further drive the gold price up, with a short-term target price of $2700 per ounce and a long-term target potentially reaching $3000 per ounce. The market is watching for risk events such as U.S. GDP data and speeches by the Federal Reserve Chairman
According to the Wisdom Financial APP, gold futures rose slightly on Wednesday, closing up 0.16% at $2681.3 per ounce, hitting a new historical high. At the same time, at least two major banks predict that the price of gold will continue to rise into next year, as a large amount of funds flow back into gold ETFs, and the market expects central banks including the Federal Reserve to further cut interest rates.
Analysts at JPMorgan Chase stated that over the past two years, strong physical demand from China and various central banks has supported the price of gold, "but in the upcoming Fed rate cut cycle, the flow of investor funds, especially the establishment of ETFs focusing on retail investors, will be key to further sustained price increases."
UBS analysts also believe that despite gold prices hitting new highs this year, there is still "significant upside potential in the next 6-12 months." UBS analysts stated that key factors include "a large amount of funds flowing back into gold ETFs, something that has been lacking since April 2022."
Furthermore, Phillip Streible, Chief Market Strategist at Blue Line Futures, also stated: "If the job market continues to weaken and the Fed Chair reiterates a 50 basis point rate cut, then in the next day or two we may see gold prices rise to $2700 per ounce."
Peter Cardillo, Chief Market Economist at Spartan Capital Securities, stated that gold futures may continue to rise, with a short-term target price of $2700 per ounce supported by Middle East conflicts and Chinese economic stimulus measures, and a long-term target price that could reach $3000 per ounce, despite the current "buying momentum is self-reinforcing."
Ricardo Evangelista, Senior Analyst at ActivTrades, stated that traders are now focusing on three key risk events - Thursday's US GDP data, a speech by Fed Chair Powell, and US personal consumption expenditure data scheduled for release on Friday - which could have a significant impact on gold prices. He added that given the recent decline in the US dollar, the market is betting that further dovish signals will pave the way for further Fed rate cuts, which could push gold prices higher