Gold prices plunged below the $1,650 mark in 2022, only to gain momentum in 2023 amid recession disquiets. Gold prices settled above $2000 an ounce last year, and registered 28 record-highs this year.
Following a choppy trading session over the previous two weeks, gold prices surged to an all-time high on Friday, topping $2,500 an ounce, and gaining more than 20% this year. One of the prominent gold ETFs, SPDR Gold MiniShares Trust (ARCA:GLDM) also jumped 21.5% year to date.
Image Source: Zacks Investment Research
Higher demand for gold from central banks, growing Federal Reserve rate-cut expectations, and geopolitical uncertainties have jacked up the price of the bullion metal, with many market participants estimating gold prices to soar well over $3000 an ounce by the end of 2025.
Central Banks Boost Demand for Gold
The demand for gold by central banks worldwide has increased significantly over the past five-year period. Almost one out of 10 ounces of gold produced by the mining industry is now being bought by global central banks, per Bullion Vault's research director, Adrian Ash.
The total value of gold held by central ...
