gold Forecast to Reach $4,200โ Per Ounce as Interest Rate Cut Expectationsโข Surge
NEW โฃYORK – Gold prices are poised for continued gains, with projections reaching $4,200 per ounce in โthe coming months, fueled by mounting expectations of interest rate reductions by theโข Federal Reserve and sustained demand from central banks. The precious โmetal has already โคexperienced a remarkable 48% surge โsince the start of 2025, marking one of its most โขsubstantial increases in history.
This bullish outlook stems from a confluence of factors impacting the global financial landscape. Traders are increasingly favoring safe-haven assets like gold amid uncertainty, โฃespecially as โeconomic indicators suggest a potential slowdown in the U.S. labor market. Market analysis currently assigns a 97% probability to a 25-basis-point interest rate โcutโฃ in October, with anโ 85% chanceโข of โa similar reduction in โฃDecember. Lower interest rates diminish the chance cost of holding gold, which doesn’t yield returns,โ thereby bolstering itsโข appeal.
UBS analysts attribute the anticipated price surge to decreasing real interest โฃratesโ in the United States and the projected continued weakness of the โขU.S. dollar. These conditions create a favorableโฃ habitat for gold, traditionally โขviewed as a hedge โขagainst inflation and currency devaluation.
Further supporting the upwardโข trajectory is consistent purchasing activity from central banks.โค Global gold reservesโ saw a net increase of โค15 tons in August, mirroring purchaseโ levelsโ observed betweenโ March and June, signaling โa renewed commitment to โฃgold holdings after a periodโ of stability in July.โ This sustained demand from influential economic powers, alongside U.S. debt purchases, reinforces theโค positive outlook for gold’s performance.
