Gold price fell slightly on Friday, October 17, but ended the week with the biggest rise since 2020. Gold futures dropped over 1% to around $4,260 an ounce after hitting an intraday high of $4,380. Despite the dip, gold was up 7% for the week as investors bought the precious metal amid uncertainty, Yahoo Finance reported.
A ‘perfect storm’ lifts gold
Kyle Rodda, senior financial market analyst, said a “perfect storm” of global factors has pushed gold prices higher. Rising trade tensions between the United States and China, expectations of another Federal Reserve rate cut, and worries about regional banks have all driven investors toward safe-haven assets like gold.
Rodda, who is a market analyst at Capital.com, described the surge as “parabolic,” noting that prices have risen unusually fast. “Gold is sending an ominous message about the future,” he said. “It could be pointing to global instability or a sign of speculation that might burst later.”
Central banks and ETFs fuel demand
Gold’s year-to-date performance has been remarkable, up nearly 59%. Central banks worldwide have been buying gold at record levels, while a weaker US dollar and falling interest rates have made holding gold more attractive than cash or bonds.
At the same time, gold-backed exchange-traded funds (ETFs) saw record inflows last quarter, highlighting strong appetite from both retail and institutional investors.
Why investors are buying gold
{{/usCountry}}At the same time, gold-backed exchange-traded funds (ETFs) saw record inflows last quarter, highlighting strong appetite from both retail and institutional investors.
Why investors are buying gold
{{/usCountry}}A Bank of America Fund Managers Survey recently found that gold is the most crowded trade in the market, beating out the “Magnificent Seven” tech stocks. 39% of fund managers have no gold, 35% have 2-4% of their portfolio in gold.
Also Read: Gold, silver prices hit records on US credit fears and ‘US-China trade war’
Wall Street raises its price forecasts
Several major banks have lifted their gold price targets. BofA analysts reiterated their “long gold” call, predicting prices could reach $6,000 per ounce by mid-2026. Goldman Sachs raised its forecast to $4,900 by the end of next year, and JPMorgan expects prices could climb to $6,000 by 2029.
For now, gold’s upsurge is due to global uncertainty and investor nervousness. Whether it continues or becomes a bubble will depend on how central banks and the world economies react to inflation, rate cuts and geopolitical risks in the coming months.
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FAQs:
Why did gold prices rise so much this week?
Gold prices rose due to trade tensions, rate-cut expectations, and worries about banks, making investors buy gold as a safe option.
How high did gold prices go?
Gold futures reached an intraday high of around $4,380 an ounce before ending the week near $4,260.
Will gold prices keep rising?
Experts say prices may rise further if global uncertainty, inflation, and interest rate cuts continue, but some warn it could become a bubble.