Gold on pace for weekly win as 'momentum' drives historic 2025 rally

Core Viewpoint - Gold is poised for a weekly gain as investor expectations for a Federal Reserve rate cut increase, influencing commodity prices and investor behavior [1][2]. Group 1: Gold Price Trends - Gold futures are around $4,240, indicating a less than 1% increase this week, and are over $100 below the October record high [2]. - Year-to-date, gold has surged more than 60%, achieving over fifty all-time highs this year, making it a leading asset for 2025 [3][4]. - Goldman Sachs analysts maintain a bullish outlook for gold, projecting a price target of $4,900 by the end of next year [7]. Group 2: Market Influences - The expectation of a 25 basis point cut in the Federal Reserve's fund rate is pressuring the US dollar index, which in turn lifts commodity prices [2]. - As interest rates decline, gold typically rises as investors shift away from interest-yielding assets like bonds [2]. - Central banks continue to buy gold at above-average levels, contributing to sustained demand [4][6]. Group 3: Future Projections - The World Gold Council forecasts that gold prices could rise by 5% to 15% in 2026, potentially reaching up to $4,900 per troy ounce [5]. - Continued strategic buying by central banks and new investment entrants, such as insurance companies in China and pension funds in India, may further bolster gold's positive trend [6].