Rate rises by the US Federal Reserve are putting pressure on gold, but, according to Goldman Sachs, are unlikely to reverse the long-term upward trend in the metal’s price. The bank maintains its forecast of $5,400 per troy ounce by the end of 2027.
UBS advises investors to choose gold over platinum due to the growing surplus of the latter on the global market. Demand for platinum is weakening, which is putting pressure on its price.
European investors sharply increased their gold investments in August. Exchange-traded funds holding physical gold received a record $7.9 billion, whilst their gold reserves rose by 54.2 tonnes. Investors took advantage of the fall in gold prices to increase their holdings once again, according to a report by the World Gold Council (WGC).
For the first time in more than a century, the U.S. Mint is issuing an unusually shaped gold coin that is also legal tender. The new coin, called the “Liberty Bell,” commemorates the 250th anniversary of U.S. independence and will go on sale on July 16.
Analysts at Bernstein maintained their “ambitious” forecast for digital gold, setting a target of $150,000 by the end of the year. They described the 54% decline from October’s peak as “mild.”
In 2000, the U.S. dollar accounted for nearly 59% of global reserves, and by the end of 2025, that share had fallen to just under 40%.
The rise in gold prices has led to a sharp increase in smuggling, which is often used to finance armed conflicts, circumvent sanctions, and launder money. The Financial Times reports this, citing representatives of the gold mining industry.
Gold prices declined on Monday, June 1, amid the escalation of the conflict between the United States and Iran. Investors preferred to focus not on geopolitical risks, but on the consequences of rising oil prices, which may push the U.S. Federal Reserve to maintain high interest rates.
Rising gold prices have forced the authorities in Ghana, the largest producer of this precious metal in Africa, to change the role of the state in the gold trade.
Analysts of JPMorgan recorded a shift in investors’ priorities after the escalation of the conflict in the Middle East.
