Gold’s historic rally shows no sign of slowing, and analysts at believe the precious metal could eventually surge to $10,000 per ounce before the decade ends — or even sooner — if current market drivers persist.
On Wednesday, bullion soared past $4,200 per ounce for the first time in history, fueled by growing expectations of imminent U.S. interest rate cuts and renewed trade tensions between Washington and Beijing. Both factors have reignited investor appetite for safe-haven assets.
As of 06:09 ET (10:09 GMT), spot gold was up 1.3% at $4,197.04 per ounce, after briefly hitting a new record high of $4,200.11. U.S. December Gold Futures climbed 1.2% to $4,213.54 per ounce.
The metal has now advanced for eight straight weeks and remains on pace for another weekly gain. Yardeni analysts say that if momentum continues, gold could easily hit $5,000 per ounce next year — and potentially double that by 2030.
The rally gained steam after remarks by on Tuesday that investors interpreted as dovish. Powell said the U.S. economy “may be on a firmer trajectory than some expected,” but warned that “a notably softer labor market is emerging.” He also noted there is “no risk-free path” for monetary policy and reaffirmed that decisions would be made “meeting by meeting.”
The comments boosted market expectations for rate cuts at the Fed’s October and December meetings, sending Treasury yields lower and weakening the dollar — both favorable conditions for gold.
Fresh trade tensions between the U.S. and China also bolstered demand. suggested cutting certain trade ties with China, particularly in cooking oil imports, after Beijing reduced purchases of U.S. soybeans. The two nations also imposed reciprocal port fees on shipping firms, intensifying their tariff dispute.
“Investors seeking protection from mounting geopolitical risks have been heading for the hills to mine for gold,” strategists at Yardeni said in a note.
They added that gold’s reliability as a hedge is standing out amid global uncertainty. “Risk-off investors may increasingly be concluding that gold is a better protection for geopolitical risks than is Bitcoin. The former has been around since the beginning of history and widely viewed as a hedge against risk, while the latter has a short history and has behaved mostly as a risk-on speculative vehicle,” they wrote.
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