Big news about the price of gold!
September 19, 20241 Min Read
International Desk: The price of gold in the world market has been holding a record high position for several days. At the beginning of next year, the price of the precious metal may reach 2 thousand 700 dollars per ounce. The American investment bank Goldman Sachs has made such predictions in a note on Monday. The company said that the upward demand of the central banks of various countries and the central bank of the United States Federal Reserve (Fed) may reduce interest rates, the gold price will increase in this possibility. News Reuters.

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Meanwhile, the Chicago Mercantile Exchange (CME) reported that the Fed may cut interest rates by 25 percentage points at the current meeting, while some market analysts believe that there is a 33 percent chance. On the other hand, others believe that there is a 67 percent chance that interest rates could drop by 50 percentage points.

In a note, the investment bank said gold prices could move slightly lower strategically if Fed policymakers cut interest rates by 25 percentage points at the current meeting, according to economists' estimates. However, as per our long-term expectations, we reiterate our target of $2,700 per ounce of gold at the beginning of next year.

Goldman Sachs also said that structurally upward demand from central banks will contribute to price growth. However, the Fed's interest rate changes are still affecting the price of the precious metal.

According to the note, exchange-traded funds backed by physical gold have also been rising steadily as the Fed's policy rate has declined.