Gold’s price has risen above $4,200 per ounce for the first time, hitting yet another record high as equity markets remain volatile.
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Analysts say that jittery investors continue to seek the safety of gold amid macroeconomic and geopolitical uncertainty and as expectations grow for more interest rate cuts from the U.S. Federal Reserve.
Gold’s price hit an all-time high of $4,217.95 per ounce in early trading on Oct. 15 before pulling back to trade at $4,205.00 an ounce. Gold’s price has risen nearly 60% this year and hit record highs on more than 30 separate occasions as investors move capital into the precious metal.
Central Bank Buying
Investors are not the only ones buying gold and sending its price higher. Analysts note that central banks around the world also continue to purchase gold at a frenzied pace, especially in China. Gold’s price is also getting a boost this year from de-dollarization (a move away from the U.S. currency) and inflows into exchange-traded funds (ETFs) such as the SPDR Gold Shares (GLD).
Some analysts are now forecasting that gold’s price could reach $5,000 an ounce by year’s end or in early 2026 if the current pace of buying continues. Gold is considered a traditional hedge against uncertainty and inflation and also thrives in a low interest rate environment as it is a non-yielding asset.
Is the SPDR S&P 500 ETF Trust a Buy?
The SPDR S&P 500 ETF Trust (SPY) currently has a Moderate Buy rating among 504 Wall Street analysts. That rating is based on 417 Buy, 79 Hold, and eight Sell recommendations issued in the last three months. The average SPY price target of $747.93 implies 11.68% upside from current levels.
