Gold prices could surge as high as $2,600 an ounce amid the ongoing global financial turmoil and the momentum of the U.S. Federal Reserve rendering interest rate decision.
Tina Teng from financial services company CMC Markets stated that the next upward trend in gold prices will come when the Fed pivots on rate hikes, which would pressure the greenback and bond yields. She expected the price of this safe asset to trade between $2,500 to $2,600 an ounce.
Gold Spot trades slightly higher by 0.19% to $1,943.73 per ounce on Wednesday. The prices rose 6.53% this year as of today, but went as high as $1,987 last Friday, representing a gain of 9% from the start of this year.
The record high Gold price was $2,075 in August 2020 at the time when the severity of the Covid-19 pandemic was at its highest.
Meanwhile, CEO Randy Smallwood of Wheaton Precious Metals said that the central bank continuing to buy gold bodes well for long-term prices.
Fitch Solutions predicted that gold would notch a high of $2,075 in the coming weeks and would remain elevated in the coming years.
