The global price of gold could potentially reach $3,000 per ounce as additional funds pour into exchange-traded funds backed by the precious metal, according to analysts at Citi, as quoted by CNBCTV18.
At 1 pm local time in Singapore, the current price sits just under $2,400 per ounce, marking an unprecedented high in international gold prices. This surge is attributed to increasing concerns about a potential conflict between Iran and Israel.
Also read: Gold rate today: Iran-Israel conflict fuels gold price today despite US dollar hitting 5-month high
Despite the absence of inflows into ETFs, gold prices have surged by over 20% since mid-February.
Since the start of 2024, gold ETF holdings have decreased by 120 tonnes, totaling 2,542 tonnes as of April 10. In 2023, data from Bloomberg indicates a decline of 254 tonnes in gold ETF holdings.
In the meantime, UBS brokerage firm has set a target price of $2,700, while Goldman Sachs has given a target of $2,500.
Citigroup anticipates that the mean gold price will hover around $2,350 per ounce in 2024, followed by a significant 40% surge to $2,875 in 2025.
The value of gold typically escalates amid uncertainties such as conflicts or pandemics, as individuals view it as a safeguard against inflation and market instability.
Also read: Gold declines as dollar, yields strengthen following US retail sales data
On Tuesday, April 16, 2024, gold prices witnessed an increase on the Multi Commodity Exchange (MCX).
“Gold traded strongly as global markets reacted negatively to Israel’s statement regarding Iran’s drone attack retaliation, leading to increased safe-haven buying in gold prices. MCX Gold surged by 300rs to reach 72600, while Comex gold reached 2370$ with overnight gains. Looking ahead, sentiment remains bullish for gold as long as geopolitical tensions persist and escalate,” said Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities.
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