710
5 days ago
Daily Spotlight: Yellow Metal in Demand
Summary
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When global economic conditions are uncertain, investors often flock to gold. Gold is currently trading at around $5,160 per ounce, up more than 17% for the year and near the high end of its five-year range of $1,660-$5,200. Back in 2019, it was fetching about $1,200 per ounce. That changed rapidly during the first phase of the pandemic, as the spot price for an ounce of gold jumped 33% in six months. Gold next spiked in 2022 due to the war in Ukraine. Over the past year, it has jumped 75%, driven by global uncertainty over tariffs and the recent attack on Iran. The current price of gold reflects the perceived safety of hard assets as well as expectations for lower U.S. interest rates, which tend to weaken the dollar (the currency in which gold is priced). The outlook for interest-rate rate cuts helps because lower rates reduce the risk of a global economic recession and thus a potential decline in gold purchased for jewelry. Our forecast trading range for gold in 2026 is $4,000-$6,000 and our average price forecast for the year is $5,200. Is the current upward trend sustainable? From a technical standpoint, the price of gold is in a long-term bullish trend of higher highs and higher lows. That's positive. But this latest spike is a bit extraordinary. On average this century, the price of gold has traded at a 6% premium to its 12-month moving average. The standard deviation is 9%. The current premium is 38%, or more than 3 standard deviations above the norm. For a fundamental valuation
Exclusive reports, detailed company profiles, and best-in-class trade insights to take your portfolio to the next level
HL: Raising target price to $25.00
WPM: What does Argus have to say about WPM?
PAAS: What does Argus have to say about PAAS?
KGC: Lowering target price to $36.00
AEM: Lowering target price to $250.00
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When global economic conditions are uncertain, investors often flock to gold. Gold is currently trading at around $5,160 per ounce, up more than 17% for the year and near the high end of its five-year range of $1,660-$5,200. Back in 2019, it was fetching about $1,200 per ounce. That changed rapidly during the first phase of the pandemic, as the spot price for an ounce of gold jumped 33% in six months. Gold next spiked in 2022 due to the war in Ukraine. Over the past year, it has jumped 75%, driven by global uncertainty over tariffs and the recent attack on Iran. The current price of gold reflects the perceived safety of hard assets as well as expectations for lower U.S. interest rates, which tend to weaken the dollar (the currency in which gold is priced). The outlook for interest-rate rate cuts helps because lower rates reduce the risk of a global economic recession and thus a potential decline in gold purchased for jewelry. Our forecast trading range for gold in 2026 is $4,000-$6,000 and our average price forecast for the year is $5,200. Is the current upward trend sustainable? From a technical standpoint, the price of gold is in a long-term bullish trend of higher highs and higher lows. That's positive. But this latest spike is a bit extraordinary. On average this century, the price of gold has traded at a 6% premium to its 12-month moving average. The standard deviation is 9%. The current premium is 38%, or more than 3 standard deviations above the norm. For a fundamental valuation
Exclusive reports, detailed company profiles, and best-in-class trade insights to take your portfolio to the next level
HL: Raising target price to $25.00
WPM: What does Argus have to say about WPM?
PAAS: What does Argus have to say about PAAS?
KGC: Lowering target price to $36.00
AEM: Lowering target price to $250.00
Sign in to access your portfolio
AI Description
The article discusses the rising demand for gold amid global economic uncertainties. It highlights gold's price movements and its role as a safe-haven asset during crises.