The gold price climbed again today, boosted by renewed hopes of an upcoming interest rate cut and a new forecast that could see it thundering towards $5,000 next year.
TipRanks Black Friday Sale
- Claim 60% off TipRanks Premium for the data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
The spot gold price was 0.35% higher at 4,079.93 in early trading.
Williams Wins Support
It was helped by comments from New York Fed President John Williams on Friday that the U.S. central bank could still cut interest rates in the near term without jeopardizing its inflation goals.
The gold price has slipped over 1% in the last month as hopes of a new rate cut in December started to diminish. Gold tends to do well during times of lower interest rates.
However, Williams’ comments left markets now pricing in a 74% chance of a rate cut at the Fed’s pre-Christmas meeting. That is up from just 40% last week.
Delayed inflation and retail sales data out later this week could, though, create more uncertainty. The headline inflation figure is expected to show an increase of 0.3% month over month in September, while the retail sales are projected to show a rise of 0.4%. If there are any signs of hotter inflation this could reduce hopes for Fed rate cuts.
New Record Target
Also supporting the gold price today were increased doubts over whether the Russia-Ukraine peace plan will be accepted in its current form by Ukraine and European leaders.
Again gold likes economic and geopolitical uncertainty as it makes investors seek it out as a safe haven for their portfolios. This fear has been a huge driver, alongside central bank buying, for the surge in the precious metal price this year.
Bank of America (BAC) expects this exceptional performance to continue well into 2026.
Assuming the economic and geopolitical conditions persist, BofA argues that bullion could climb to $5,000 an ounce in 2026. The bank cautions, however, that a materially more hawkish Federal Reserve remains the principal risk to its bullish outlook.
What are the Best Gold Stocks to Buy Now?
We have rounded up the best gold stocks to buy now using our TipRanks comparison tool.
