Gold continues to rise for the fourth consecutive week, surpassing $3650
Gold continued its gains for the fourth consecutive week, closing on Friday, September 12, with a weekly increase of about 1.8%, while the price of the ounce surpassed the $3650 mark, supported by expectations of a reduction in U.S. interest rates and active trading in gold-backed exchange-traded funds.
The yellow metal recorded an increase of nearly 2% during the week, with U.S. futures for December delivery rising by 0.5% to $3690.30 per ounce. Silver also jumped to its highest level since 2011, exceeding $42 per ounce.
Kelvin Wong, a market analyst at OANDA, believes that "the market is now looking at a significant opportunity for at least three interest rate cuts before the end of 2025, which exceeds previous expectations from two months ago and currently supports gold prices".
This rise came amid mixed U.S. economic data showing a 0.4% increase in consumer prices in August against an unexpected decline in producer prices, with an increase in unemployment claims last week indicating weakness in the labor market.
Market expectations align with a Reuters survey of 107 economists, where nearly everyone expects a 25 basis point cut on September 17, with most expecting another cut in the next quarter.
UBS has raised its gold price forecast by $300 to reach $3,800 per ounce by the end of 2025, and an additional $200 to reach $3,900 by mid-2026. The bank noted that "geopolitical concerns and policy differences between the U.S. administration and the Federal Reserve are among the main factors enhancing gold's appeal".
On a year-to-date basis, gold has jumped 39% since the beginning of the year, surpassing the performance of major stock indices, having recorded a new all-time high this week, exceeding its inflation-adjusted peak from over 45 years ago.
Regarding other metals, silver slightly declined to $41.48, while platinum remained at $1378.40 and palladium at $1188.34, all maintaining their weekly gains overall.
