Gold Price: Is It Golden Time to Invest? Here’s What JP Morgan, Citi And Bank of America Are Predicting On Gold Price | Personal Finance News

Is It Golden Time to Invest? Here’s What JP Morgan, Citi And Bank of America Are Predicting On Gold Price (image source: Times Now Digital)

Gold prices: Globally yellow metal prices have been on a surge for the past four consecutive weeks, reaching unprecedented highs and surpassing USD 2,410 per ounce. This is a 3 per cent increase in a week, and surge can be attributed to escalating tensions in the Middle East. April has emerged as a month of record highs for gold, with gains of 14 per cent recorded so far this year, surpassing the entire 13 percent gains of the previous year. As the gold price at its peak for interested investors is it a good time to invest in Gold? here are the reasons behind the recent rally and gold price projection from leading brokerages

Factors Driving Gold’s Price Rise

Gold’s upward trajectory is supported by several factors. Firstly, there is increased demand for safe-haven assets due to concerns about higher inflation and expectations of interest rate cuts. Additionally, geopolitical tensions on a global scale, particularly in the Middle East, are bolstering gold’s appeal as a safe investment.

Escalating Tensions in the Middle East

Escalation in tensions between Israel and Iran, with Israel reporting multiple drone and missile attacks originating from Iran, Iraq, and Yemen. This widening conflict in the Middle East reinforces gold’s status as a preferred asset during times of geopolitical uncertainty.

Impact of Rising Crude Oil Prices

The surge in crude oil prices, up 18 per cent in 2024, further supports gold’s rally. Supply disruptions in the Red Sea, attacks on Russian oil facilities by Ukrainian drones, and OPEC output cuts have contributed to higher crude prices. Elevated crude oil prices often lead to higher inflation, driving investors towards gold as a hedge against inflation.

Longest Winning Streak for Gold

Gold price from last fourth consecutive week seen gains, marking the longest winning streak since early 2023. Despite concerns about gold being overbought, fears of a full-blown regional conflict in the Middle East continue to fuel market sentiments.

Gold Price Projection

Analysts from leading financial institutions have provided bullish forecasts for gold prices

JP Morgan Forcast On Gold Price

Leading US investment bank JP Morgan has forecasted USD 2,500 per ounce.

Citi Forcast On Gold Price

Brokerage Citi forecasts a surge in gold prices to USD 3000 per ounce.

Bank Of America Forcast On Gold Price

Bank of America forecasts a target of USD 3000 by 2025.

These forecasts reflect the current momentum driving gold prices higher, with potential for further gains in the near future. While there may be periods of liquidation, any dips in gold prices are viewed as buying opportunities by market analysts.

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. Times Now Digital suggests its readers/audience to consult their financial advisors before making any money related decisions.)