Gold notches biggest gain since 2020 as precious metal goes 'parabolic’

Core Insights - Gold futures experienced a significant rally, achieving their largest weekly gain since 2020, with a 7% increase over the past week, despite a decline of more than 1% on Friday [1][2] - The surge in gold prices is attributed to trade tensions between the US and China, anticipated rate cuts from the Federal Reserve, and credit concerns related to regional banks [2][5] - Year-to-date, gold prices have risen approximately 59%, driven by strong central bank purchases, a weaker dollar, and favorable interest rate conditions [2] Market Trends - Inflows into gold-backed ETFs reached record levels in the last quarter, indicating strong investor interest [3] - The BofA Fund Managers survey highlighted gold as the most crowded trade in October, surpassing popular tech stocks [3] - Current allocations to gold among fund managers show that 39% have minimal exposure, while 19% and 16% have 2% and 4% allocations, respectively [3] Price Forecasts - BofA analysts maintain a "long gold" recommendation, projecting a peak price of $6,000 per ounce by mid-2026 [4] - Goldman Sachs has raised its gold price target to $4,900 per troy ounce by the end of next year, up from $4,300 [4] - JPMorgan analysts predict gold could reach $6,000 per ounce by 2029 [4]