Macquarie: gold may surge to $3,500 in third quarter

Macquarie Group analysts forecast gold prices to rise to a record $3,500 per ounce in the third quarter. The average price this year, in their opinion, will amount to $3,150 per ounce. Such growth is expected due to the increasing investment demand for the metal as a safe asset.

As Bloomberg notes, gold prices have already risen 12% since the beginning of the year driven by geopolitical tensions and President Trump's protectionist policies.

Concerns about the growing US budget deficit also support the precious metal. A worsening US budget outlook is signaling a possible increase in inflation, Macquarie analysts believe.

They also see an increasing willingness of investors and official institutions to pay for the lack of credit or counterparty risk. Macquarie forecasts a further rise in interest in gold exchange-traded funds, the deposits of which may increase significantly. In addition, gold will find support from the physical market, including jewelry and coins, despite high prices, experts add.