The price of gold continues to climb, reaching a record of at least $4,200 per ounce on October 15, as the US Federal Reserve is still expected to reduce policy rates in the United States.
The price of gold per ounce climbed by 1.44 percent to reach $4,202 per ounce as of 0737GMT on October 15.
On an annual basis, the price of gold gained around 60 percent, as it hovered above $2,500 per ounce 12 months ago.
On October 8, the price of gold reached $4,000 per ounce for the first time, as investors still saw the US Fed reducing policy rates, and central banks buying more of the commodity to beef up their reserves.
The US Fed is seen reducing policy rates as the US job market remains soft, while the overall economy “might be on a slightly stronger path than anticipated.”
Goldman Sachs also sees private sector investors diversifying to gold, and forecasts the price of gold reaching as high as $4,900 per ounce by the end of 2026.
“We see the risks to our upgraded gold price forecast as still skewed to the upside on net, because private sector diversification into the relatively small gold market may boost ETF holdings above our rates-implied estimate,” it said.
Goldman Sachs earlier saw the price of gold settling at around $4,300 per ounce by the end of next year.
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