The spot price of Gold has surged above $2500 per troy ounce, hitting record highs in mid-August and continuing to climb, according to NAB commodity strategists.
Central banks driving Gold demand
Amidst financial market turbulence in early August, including falling equity markets and bond yields, Gold demand has seen a boost. Central banks are identified as key drivers of this demand, with Gold exceeding previous price forecasts.
NAB commodity strategists now predict Gold to average US$2315/oz in 2024, with a slight decline to US$2290/oz in 2025.
Analysis:
The surge in Gold prices is attributed to central banks’ role in driving demand, amidst market uncertainty. This trend is expected to continue in the coming years, with Gold prices projected to remain strong. Investors should consider the implications of central bank actions on Gold prices when making financial decisions.