Gold on pace for biggest week since 2020 as precious metal goes 'parabolic’

Core Insights - Gold futures experienced a significant rally, poised for their largest weekly gain since 2020, despite a slight decline on Friday [1][2] - The precious metal has surged nearly 8% over the past week, driven by various market factors [2][3] - Year-to-date, gold prices have increased approximately 59%, influenced by strong central bank purchases, a weaker dollar, and anticipated rate cuts [4] Market Dynamics - Trade tensions between the US and China, expectations of a Federal Reserve rate cut, and concerns over regional bank stability have collectively contributed to a 7% increase in gold prices over the past week [3][7] - Gold is currently viewed as a crowded trade, with 39% of fund managers indicating minimal allocation to gold, while a significant portion holds small allocations [5] Future Projections - Analysts from BofA have reiterated a bullish stance on gold, predicting a peak price of $6,000 per ounce by mid-2026 [6] - Goldman Sachs has raised its gold price forecast to $4,900 per troy ounce by the end of next year, up from $4,300 [6] - JPMorgan analysts project that gold could reach $6,000 per ounce by 2029 [6]