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yesterday

Gold Hits New Record After Fed Cut as Banks Lift $4,000 Targets

Expectations for continued Fed easing, a softer dollar, plus strong central‑bank buying are propelling prices alongside higher Wall Street forecasts.

Jewellery is displayed at the Gold Souk market in Dubai, United Arab Emirates, March 14, 2025. REUTERS/Amr Alfiky/File Photo
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A customer displays a gold bar purchased at a Costco Wholesale Corp. location in Bayonne, New Jersey, on Oct. 4, 2024.
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Overview

  • Spot gold set an intraday all‑time high near $3,707 after the Fed’s 25 bps cut, then hovered in the mid‑$3,600s as traders digested the guidance.
  • The Fed lowered its policy range to 4.00%–4.25% and signaled two more reductions this year, while the dollar weakened and yields fluctuated.
  • Deutsche Bank raised its 2026 average gold forecast to $4,000 per ounce, citing resumed U.S. rate easing, potential dollar softness, and official demand running at roughly twice the 2011–2021 pace.
  • Bank of America projects $4,000 in the second quarter of 2026 and notes sector valuations remain below past peaks even after bullion’s surge.
  • Indian prices stayed near records around Rs 1.10 lakh per 10 grams, with some profit‑taking, as analysts warned gains could reverse if the dollar rebounds or policy surprises emerge.