Prices broke through the US$3,000 an ounce barrier on Friday, against a backdrop of growing angst about the economic risks arising from US President Donald Trump’s disruptive trade agenda. US consumer confidence has plunged, while inflation expectations have surged, and as the apprehension grows, many analysts have been hiking their price targets.
Bank of America Corp, Citigroup Inc and Macquarie Group have been vocal cheerleaders for gold during a breakneck rally that has taken prices to record highs above US$3,000 an ounce. With anxiety about the global economy growing, they see plenty of reasons to stay bullish.
Gold has been on the charge since late 2022, with elevated central-bank purchases and a buying spree in China causing prices to almost double in a little over two years. Now, it is bullion’s time-tested status as a haven asset that’s drawing investor interest.
