Where Do Gold Prices Go From Here? Here's What Experts Say

Core Insights - The price of gold has experienced significant fluctuations, reaching a high of $4,360 per troy ounce on October 20, before dropping to $3,970 and then rebounding to around $4,260 recently, indicating ongoing volatility in the market [2][3][7] - Analysts suggest that despite the end of the federal government shutdown, the demand for gold remains strong due to economic uncertainty and potential political risks, with UBS projecting a possible price increase to $4,700 if risks escalate [3][4][7] Investment Demand - There has been a notable increase in investment demand for gold, particularly from North American exchange-traded funds (ETFs), which have significantly boosted trading volumes [3][8] - U.S. gold trading volume reached a record high of $208 billion per day in October, with a 59% increase in September and a further 51% rise in October, driven primarily by ETF demand [8] Market Environment - The current market environment remains uncertain, with potential for further government shutdowns and legal challenges to tariff policies, which could sustain support for gold prices [9][10] - UBS anticipates that global gold demand could reach its highest level since 2011 due to factors such as potential interest rate cuts, a weakening U.S. dollar, and high levels of global government debt [11] Retail Demand - Retail demand for gold has shown improvement, particularly for gold bars in the U.S., with reports of strong sales from retailers like Costco, driven by consumer trust and stable pricing in a rising market [12]