There is still room for gold prices to rise and they could reach $2,600 an ounce in the near future. As a result of Silicon Valley Bank’s collapse and Credit Suisse’s difficulties, investors have been turning to gold and Treasury securities. According to Refinitiv data, gold reached its all-time high of $2,075 in August 2020.
There is still a lot of room for gold prices to rise as global banks struggle and the Federal Reserve renders another interest rate decision, possibly breaking all-time highs. Due to the failure of Silicon Valley Bank and the implosion of Credit Suisse, investors have been flocking to gold and Treasury securities.
The price of gold is currently $1,940.68 per ounce. It reached its highest level since March 2022 on Monday when it crossed $2,000 for the first time. Since the bank run at SVB in early March, gold has risen approximately 10%. According to Refinitiv data, gold reached an all-time high of $2,075 in August 2020. The demand from central banks is likely to keep the ship afloat.
“The continued purchase of gold by central banks bodes well for long-term prices,” said Wheaton Precious Metals CEO Randy Smallwood. I think it’s very plausible that we see a strong performance in gold over the coming months. The stars appear to be aligning for gold which could see it break all-time highs before long.
According to Smallwood, gold prices are expected to reach $2,500 in the near future. Gold demand reached an 11-year high in 2022 due to “colossal central bank purchases,” according to the World Gold Council. Last year, central banks purchased 1,136 tons of gold, a 55-year high. Fitch Solutions forecast a high of $2,075 for gold “in the coming weeks.” It cited “global financial instability,” adding that gold would “remain elevated in the coming years compared to pre-Covid levels.”