Gold prices have more room to spike as global banks struggle and investors await the U.S. Federal Reserve rate decision, and could go as high as $2,600 per ounce.
Prices of the metal on Monday breached $2,000 to mark the highest since March 2022. Its all-time high was $2,075 in August 2020, Refinitiv data showed.
“A sooner Fed pivot on rate hikes will likely cause another gold price surge due to a potential further decline in the U.S. dollar and bond yields,” CMC’s Market Analyst Tina Teng, who sees gold prices hitting between $2,500 to $2,600 an ounce, told CNBC.
Gold prices soar amid banking turmoil
Gold prices are expected to maintain at record highs as well, Fitch said.
“We believe the mounting of global financial instability is likely to drive gold prices towards its all time high of $2,075 in the coming weeks,” Fitch Solutions wrote in report dated March 20, expecting gold prices to “remain elevated in the coming years compared to pre-Covid levels.”
This article was originally published by CNBC.
