TD Securities Predicts Gold Prices to Surge in Coming Weeks, Targeting $2,475 an Ounce by Q1 2025
In a recent note, TD Securities forecasted a bullish trend for gold prices in the near future, citing steady central bank buying and increased clarity on U.S. interest rate cuts as key factors driving the yellow metal's ascent.
Despite a temporary stall following reports of the People’s Bank of China halting gold purchases in June, TD remains optimistic about gold's prospects. The Reserve Bank of India, the National Bank of Poland, and the Czech National Bank all continued to add to their gold reserves, signaling strong support for the precious metal.
TD analysts believe that central bank buying, combined with a clearer outlook on U.S. interest rate cuts, will provide a strong foundation for gold's performance in the months ahead. They anticipate that as more investors turn to gold for diversification and safe-haven purposes, the metal could reach new record highs.
While spot gold briefly touched $2,450.06 an ounce in May amid geopolitical tensions, it experienced a subsequent decline before stabilizing. Nonetheless, spot prices have still seen a 15% increase in 2024, buoyed by expectations of U.S. interest rate cuts. The Federal Reserve is widely expected to announce a 25 basis point rate cut in September.
In conclusion, the outlook for gold remains positive as central bank demand and interest rate dynamics continue to support its upward trajectory. Investors may want to consider adding gold to their portfolios as a hedge against market volatility and currency fluctuations.