Global Gold Hits Record High Again...Goldman "Heading to $4000 Next Year"

Once Surpassed $3300 per Troy Ounce

Surge in Demand for Safe Assets Due to Weak Dollar

As uncertainty grows due to global trade disputes, funds are flocking to gold, a safe asset. Some institutions are predicting that the price of gold will reach $4000 per troy ounce next year.

Global Gold Hits Record High Again...Goldman "Heading to $4000 Next Year" According to Bloomberg on the 16th, as of 2 PM, the spot gold price rose 1.65% compared to the previous day's closing price, trading at $3284.27 per troy ounce, setting a new record high. It surged 37.8% compared to a year ago (April 16, 2024, $2382.89). Gold futures are also drawing a steep upward curve. It is trading at $3298.87, up 1.8% from the previous day. At one point during the day, it recorded $3305.62, breaking through the $3300 level.

The broad tariff threats from the Trump administration and the escalation of the US-China trade dispute have caused a surge in demand for safe assets as the market tenses. Generally, when signs of a global economic slowdown appear, the preference for safe assets increases. Additionally, as the dollar, which was grouped with other safe assets, shows weakness against major currencies, investors' preference for gold has strengthened. Tim Waterer, Chief Analyst at KCM Trade, said, "Various factors such as the weak dollar and continued risk aversion are supporting the rise in gold prices."

Goldman Sachs predicted that gold would rise to $3700 per troy ounce by the end of this year and could reach $4000 by mid-next year.

Goldman Sachs explained in a report, "The forecast for the world's central banks' gold purchases this year is about 80 tons per month on average, raising the previous estimate." It added, "If the risk of recession increases, inflows into gold-based ETFs will increase, causing gold prices to rise."

Han Gyeongje Reporter hankyung@hankyung.com