Will gold prices extend their record-breaking run?
Predictions suggest the price of the precious metal will keep hitting new record highs as investors seek a safe bet in turbulent times. Some forecasts say prices could double within five years.
Gold prices have been steadily increasing over the past few years, with the price per ounce rising from $1,585 in 2020 to over $4,500 in recent times. This surge in value can be attributed to several factors, including expectations of interest rate cuts and a weaker US dollar, as well as strong purchases by central banks and a growing demand for gold coins and bars.
Central banks in emerging markets, such as China, Russia, India, and Turkey, are also increasing their gold reserves, which could potentially push the price of gold to $8,000 per ounce by 2031. While some experts, like Thomas Kulp of DZ Bank, believe that gold remains the ultimate safe haven during uncertain times, others, like Frank Schallenberger and Michael Hsueh of Deutsche Bank Research, argue that the current price levels may not support a doubling of gold prices in the next five years.
Instead, they foresee central banks continuing to build their gold reserves as a hedge against geopolitical risks and inflation, potentially driving the price to around $8,000 per ounce.
Written by urgent.news from DW Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
