The price of gold set new all-time highs on Friday, breaking through the $2,600 per ounce (31.10 grams) mark for the first time. Highlighting a cocktail of interest rate cuts, geopolitical uncertainties, a weakening dollar and strong demand in emerging markets, analysts are betting on a continuation of the upward trend in this safe haven par excellence, at least in stages.
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At 10:11 AM, the price of gold was trading at $2,607.40 per ounce, after hitting a record high of $2,609.74 per ounce. A year ago, gold was still trading at around $1,900 per ounce.
“Gold has gained further height in recent weeks, despite an astronomical performance over the past twelve months already,” enthuses Claudio Wewel, foreign exchange specialist at J.Safra Sarasin. The expert now anticipates a consolidation phase concomitant with a slowdown in demand from emerging markets, while betting on a resumption of escalation in the longer term.
At UBS, wealth management forecasters articulate a target of $2,750, noting that the yellow metal has a history of generating higher returns than stocks during periods of high volatility. They recommend a 5% allocation to gold in any diversified dollar-denominated portfolio.
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