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Gold prices hit a record high for a 13th time this year on Friday, as several factors, including rising geopolitical tensions, bets on U.S. interest rate cuts and near-record purchases by central banks, kept the metal rallying despite strong job growth in United States in March.
Gold's safe haven potential has more than offset a significantly stronger-than-expected US labor market, fueling concerns that the Federal Reserve's interest rate cuts may not be such a sure thing after all; Gold prices are closely tied to rates, and higher rates decrease the metal's appeal.
The most active Comex gold contract (XAUUSD:CUR) for June delivery is closed +1.5% to $2,345.40 an ounce on Friday, after trading as high as $2,350 during the session, an all-time intraday record.
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Some analysts warn that growing uncertainty over Fed rate cuts will be a headwind for gold prices, including Commerzbank's Thu Lan Nguyen, who doubts the Fed will launch a “pronounced easing cycle” and therefore , expects “to see limited additional upside potential for gold in the coming years.” middle ground.”
But David Rosenberg of Rosenberg Research predicts that gold increase to $3,000 or even moreand not just driven by the Federal Reserve.
“With an easing cycle on the horizon, weak and weaker-looking global growth, and inflation in its final leg of decline, we believe the tailwinds driving gold to new highs are about to become much stronger. strong,” writes Rosenberg. .
Western investors have not yet become bullish on gold, and big money managers are not investing enough in the commodities sector in general, Rosenberg says, also pointing to tight supply conditions and reputation as positives. safe haven for gold.
