Gold just broke through its previous all-time high, surging past $3,540/oz this week, as well as **£2,664.20/oz in GBP – and all signs point to the rally continuing.
A weakening US dollar, rising inflation concerns, and growing expectations of interest rate cuts from the Federal Reserve have all combined to boost gold’s appeal.
According to CME Fed Fund futures, markets are pricing in a 90% chance of a 25-basis point cut at the Fed’s September meeting, with another potential cut in October currently given a 46% probability. These expectations are further supporting the bullish narrative for gold.
In a historic shift, global central bank gold holdings have now surpassed their US Treasury holdings for the first time in nearly three decades. This move reflects a broader trend of diversification away from the dollar, as the US Treasury yield curve steepens and long-term bond yields climb.
Market sentiment suggests that gold has more room to run. The current price action is in price discovery mode, with limited selling pressure and strong demand helping to drive the market higher.
Nick Cawley, analyst at Solomon Global, remains confident in the outlook for both gold and silver.
“The fundamental drivers supporting both metals remain robust,” he says, citing “persistent geopolitical risk, a wave of interest rate cuts from major central banks, and a clear trend towards diversification away from the dollar.”
Cawley believes gold could reach $3,750 an ounce by the end of the year.
Silver, meanwhile, is also gaining ground. With prices steadily climbing, it is now approaching several major resistance levels from 2011 – including $43.38, $44.22, and $48.15 – with its all-time high of $49.83/oz not far beyond. The first two targets look within reach in the final months of 2025.
In the current environment, the upward momentum in both gold and silver shows no sign of slowing.
**Source: The Royal Mint
Further reading:
Kitco | Silver and gold prices surge as precious metals finally make their move
The i Paper | Gold at record high at $3.5k per ounce – is it time for you to invest?
Investing.com | Gold, Silver Prices Rise as Fed Rate Cut Speculations Boost Precious Metals
Disclaimer: This blog is for informational purposes only and does not constitute financial advice. Buying physical gold as an investment involves risk, as the value of precious metal prices can be volatile. Historical financial performance does not necessarily give a guide of future financial performance. We recommend that you conduct your own independent research and seek professional tax, legal and financial advice before making any investment decisions.
