Gold has been experiencing its best performance in 14 years, according to Commerzbank. The price hit a new record high today at $2,640 per troy ounce, surpassing the previous high by $110. This marks a significant upward trend, with gold continuing to gain as a safe-haven asset in times of inflation and economic uncertainty.
Carsten Fritsch, a commodity analyst at Commerzbank, highlighted that the strength of gold isn’t just in the U.S. dollar but is being seen across major global currencies such as the euro, pound, franc, renminbi, and rupee. The bank has revised its gold price forecast to $2,600 per ounce by the end of 2024, up from its previous estimate of $2,500. While they anticipate a potential rise in the short term, Commerzbank believes this surge may not be long-lasting.
Looking further ahead, they expect the price to stabilize around $2,600 through mid-2025, particularly given the current outlook that suggests no interest rate hikes from the Federal Reserve in 2026. As a result, the bank has also adjusted its year-end 2025 forecast to $2,600, slightly up from $2,550.