The price of gold reached a fresh all-time high this week as uncertainty about the impact of US tariffs on the global economy spurred purchases of the safe-haven asset.
Central banks, particularly in emerging markets such as China and India, have been increasing their gold reserves, reflecting a growing lack of confidence in the US dollar and a move towards diversifying away from it.
Gold hit a record $2,954.69 per ounce on Thursday but pulled back during Friday’s session as investors secured their profits.
Analysts see gold prices continuing to rise, with Goldman Sachs predicting a climb to $3,100 per ounce and UBS suggesting a possible peak of $3,200.
Goldman cited increased central bank demand, while UBS mentioned factors like bullish sentiment and FOMO (fear of missing out).
"After missing several (brief/ shallow) buying opportunities in 2024, investors are likely wary of repeating the same patterns and may want to take advantage of corrections sooner this time around,” UBS analysts wrote in a note to clients.
Here's a roundup of the news shaping the gold market this week: