Gold prices are testing higher highs.
Last trading at $2,562, gold could easily test $2,700 this year, and possibly $3,000 by next year, according to analysts at Citi.
Not only is the potential for interest rate cuts driving gold higher, but so is uncertainty with nearing elections and heightened tensions in the Middle East. All of which is also helping to fuel upside in gold stocks including Barrick Gold (GOLD), Royal Gold Inc. (RGLD), Franco Nevada and Newmont Corp. (NEM).
In addition, as noted by CBS News, “One of the most significant drivers of gold’s price surge has been the aggressive purchasing by central banks worldwide. This trend shows no signs of slowing down, either, as many countries seek to diversify their reserves away from traditional currencies. The sustained demand from these institutional buyers provides a solid foundation for continued price appreciation and is likely to play a role in gold’s price trajectory over the next month.”
“As we move into September, the confluence of these factors — central bank buying, economic uncertainty, sustained investor demand, growing industrial uses and supply constraints — creates a compelling case for continued strength in gold prices.”
