Gold’s safe-haven appeal could push prices to a record high of US$3,500 an ounce in the third quarter, according to analysts at Macquarie Group. The precious metal may average US$3,150 an ounce over the period, analysts led by Marcus Garvey stated in a note.
Bullion, which was trading around US$2,940 an ounce on Thursday, is expected to gain further support from concerns over a potentially widening US deficit. A worsening US budget outlook signals rising inflation, strengthening gold’s role as a hedge, Macquarie said.
Gold has already climbed 12% this year, fuelled by geopolitical uncertainties and US President Donald Trump’s tariff policies.
“We view gold’s price strength to date, and our expectation for it to continue, as primarily being driven by investors’ and official institutions’ greater willingness to pay for its lack of credit or counterparty risk,” the analysts wrote.
There is “ample scope” for bullion-backed exchange-traded funds to increase holdings, they noted. Additionally, gold demand in the physical market—including jewellery, bars, coins, and technology—remains resilient despite high prices.
Last month, Goldman Sachs raised its year-end gold target to US$3,100 an ounce, while Citigroup forecasted prices reaching US$3,000 an ounce within three months.
