Gold Hits Record as ETFs See Strong Inflows
Technical indicators also point to further upside. “The charts look solid and strengthen expectations for deeper rate cuts,” analysts said.
Quick overview
- Gold prices have reached record levels above $3,720 per ounce, driven by significant inflows into ETFs backed by the metal.
- Silver has also seen a remarkable increase, climbing over 50% year-over-year and surpassing $43 per ounce.
- Analysts predict that the bullish trend for both metals will continue due to looser Fed policy and rising demand for safe havens amid geopolitical tensions.
- However, some experts caution that gold's rapid rise may lead to a consolidation phase before further gains.
Gold continued to shine in global markets, trading at record levels above $3,720 per ounce. The rally has been fueled by strong inflows into exchange-traded funds (ETFs) backed by the metal, which posted their largest increase in three years.
At the same time, investors reinforced bets that the Federal Reserve will press ahead with interest rate cuts through the end of the year.
The momentum wasn’t limited to gold. Silver also surged, climbing more than 50% year-over-year and breaking above $43 per ounce. The strength of both metals underscores their position as some of the best-performing commodities of the year.
ETF Demand Keeps Building
According to Bloomberg, bullion-backed ETFs rose 0.9% last week, the sharpest gain since 2022.
Analysts at banks including Goldman Sachs expect the bullish trend to continue, supported by a mix of factors: looser Fed policy, rising gold reserves among central banks, and a global backdrop of geopolitical tensions that sustains demand for safe havens.
Technical indicators also point to further upside. “The charts look solid and strengthen expectations for deeper rate cuts,” analysts said.
Correction or Consolidation?
Still, some warn that gold’s more than 10% jump in just five weeks could give way to a consolidation phase. Prices may trade sideways—or even retreat temporarily—before resuming their upward trajectory.
Markets are now awaiting key U.S. data this week, including August personal consumption expenditures (PCE), the Fed’s preferred inflation gauge. A cooling in that index could bolster bets on additional rate cuts.
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