Trending Articles- Gold Price Forecast: Gold Poised to Break $4,200 as Oil Price Slump Eases Inflation Fears
- Gold declines despite easing concerns over inflation, interest rate hikes
- Gold Price Forecast: Oil Price Breaking $100 Fuels Inflation Concerns, Will Gold Prices Fall Further?
- Fed Decision Eve: 104 Economists Expect No Change; Why Is Citadel Securities Betting on a Surprise Hike?
- Middle East War updates: US-Iran pause strikes as Trump weighs up diplomatic options
- WTI Oil flirts with the $80 level amid speculation about US-Iran peace talks
Powell's speech sent gold prices soaring to new highs. Goldman Sachs predicts gold could reach $3,700 by year-end or even higher.
On Thursday, after Powell's remarks, spot gold (XAUUSD) peaked at $3,357 per ounce, settling at $3,330 per ounce.
Gold Price Chart, Source: TradingView.
In his speech at the Chicago Economic Club, Powell said potential tariffs could lead to rising inflation and slowing growth. However, the Fed won’t intervene to save the market.
He noted, "The market faces a lot of uncertainty, but it is digesting what’s happening. It’s orderly and functioning as expected."
Before this, many expected the Fed would act to address issues from Trump's tariffs. Powell's comments dashed those hopes, driving up safe-haven demand and pushing gold prices higher.
Gold has been on a remarkable rise this year, up nearly 28% so far. Despite this, Goldman Sachs has raised its gold price forecasts. They believe it could hit $3,700 by the end of 2025, and possibly reach $4,500.
Read more
* The content presented above, whether from a third party or not, is considered as general advice only. This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.
