Some of the largest global banks, including Bank of America, Citigroup and Macquarie, remain optimistic about gold, with its price exceeding $3,000 per ounce. The main drivers of the precious metal's recent rally are economic risks, falling consumer confidence in the US, and inflation expectations.
Robust central bank purchases and investor demand are supporting the yellow metal market. At the same time, North America saw the largest inflows into gold ETFs this February since 2020.
Additional surge in demand is expected in China due to new investment initiatives. Macquarie raised its gold price forecast to $3,500, while Goldman Sachs points out the impact of political uncertainty in the US and strong demand from regulators on the metal's price.
Despite possible short-term fluctuations, analysts see the potential for further growth. However, they warn that the stock market sell-off may temporarily hit the gold price, as reported by Bloomberg.