Gold soared to an eye-popping $3,250 per ounce this week, marking a massive 7% surge – its strongest weekly performance in five years. Daily gains of $100 became the new normal as investors rushed to safety amid global trade tensions and inflation fears. Central banks, particularly China, are stockpiling the precious metal at unprecedented rates, while retail investors join the gold rush. Goldman Sachs predicts even higher prices ahead, suggesting this rally has more shine left.
While financial markets grapple with uncertainty, gold has blasted through previous records with a jaw-dropping 7% surge this week. The precious metal shot past $3,250 per ounce, leaving traders slack-jawed and analysts scrambling to update their forecasts. Daily jumps of $100 per ounce became the new normal, as investors rushed to park their money somewhere – anywhere – that felt safe.
The reasons behind this golden frenzy? Take your pick. Trade tensions between global powers are through the roof. The U.S.-China trade war keeps getting messier. New tariffs are popping up like mushrooms after rain. And let’s not forget inflation fears, which have investors clutching their pearls – or in this case, their gold bars. JPMorgan’s massive gold bullion delivery to Comex has only intensified market speculation. The higher market liquidity of gold compared to other safe-haven assets has made it particularly attractive during this period of uncertainty.
Global markets are in chaos, with trade wars and inflation fears sending investors scrambling for gold’s safe embrace.
Central banks aren’t helping calm things down either. They’re gobbling up gold like it’s going out of style, while quietly showing the U.S. dollar the exit door. China and other emerging markets are leading this charge, stockpiling the yellow metal at unprecedented levels since 2022. Some mining companies are seeing single-digit P/E ratios, presenting rare value opportunities in the sector. It’s quite the power move, really.
The retail crowd has jumped on the bandwagon too. Small investors, tired of watching their portfolios bounce around like ping-pong balls, have decided gold looks pretty good right now. This surge in retail demand helped push quarterly gains to a whopping 20% – the biggest jump since 1986. Talk about making history.
Looking ahead, Goldman Sachs and other market watchers think this party’s far from over. They’re eyeing $3,500 per ounce by 2025’s end – another 8% climb from current levels. Given gold’s track record of outperforming other assets during times of crisis, it’s not hard to see why. The metal’s gained nearly $600 per ounce just this year.
In a world where geopolitical drama seems to be the new normal, gold’s latest performance isn’t just impressive – it’s a stark reminder of why humans have valued this shiny metal for thousands of years. Some things, it seems, never change.
