Gold prices rose 2.15% this week, reaching a high of $4,764.73 per ounce, as optimism grows over potential progress in U.S.-Iran negotiations. The ongoing blockade of the Strait of Hormuz has heightened geopolitical tensions, yet global capital continues to flow into gold assets. In April, global physical gold ETFs saw net inflows of $6.6 billion, reversing a previous outflow trend, with Asian market gold ETFs recording net inflows for eight consecutive months.
China's central bank increased its gold holdings by 260,000 ounces in April, marking the 18th consecutive month of accumulation. Analysts, including Ray Dalio of Bridgewater Associates, emphasize gold's role as a vital wealth reserve amid expanding sovereign debt and currency depreciation. Goldman Sachs forecasts gold could reach $5,400 per ounce by the end of 2026, while UBS and Bank of America project prices of $5,900 and $6,000 per ounce, respectively, over the next year. Despite potential short-term fluctuations, long-term support for gold remains strong.
Gold Prices Surge 2.15% Amid U.S.-Iran Negotiation Hopes
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