Gold prices rebounded on Thursday, according to Jinshi Data on September 19. Alex Ebkarian, chief operating officer of Allegiance Gold, said the market is considering larger and more interest rate cuts because the United States has fiscal and trade deficits, which will further weaken the overall value of the dollar.
If you combine geopolitical risks with the current US deficit, low yield environment and a weaker dollar, all these factors together are what is causing gold to rise. We expect this rally could go much further, targeting $2,700/oz by mid-2025.
In addition to short-term risk drivers, we expect demand for gold ETFs to increase in the coming months.
