As the price of Gold (XAU/USD) reaches a new all-time high, Commerzbank’s Commodity Analyst Carsten Fritsch sees a bright future ahead. With the Federal Reserve expected to cut interest rates, Fritsch has raised his forecast for Gold price to $2,500 per troy ounce by year-end, up from $2,300 previously.
Fed’s Rate Cut Signals Bullish Trend for Gold
Recent data shows that the US inflation rate dipped below 3% in July, prompting expectations of a rate cut by the Fed in September. While the core rate remains slightly higher at 3.2%, the overall outlook is bullish for Gold. Fed Fund Futures are pricing in significant rate cuts, leading to Fritsch’s optimistic forecast.
With expectations of multiple rate cuts in the coming months, Fritsch predicts a continued rise in Gold prices. By mid-2025, the price could reach $2,600 before stabilizing at $2,550 by year-end. This forecast takes into account inflation trends and potential interest rate hikes in the future.
Analysis: What Does This Mean for You?
For investors, the forecasted rise in Gold prices presents an opportunity for potential gains. With the Federal Reserve’s dovish stance on interest rates, holding Gold as a hedge against inflation and economic uncertainty could prove beneficial. Keep an eye on market trends and consider diversifying your portfolio to take advantage of this bullish trend in Gold prices.