Gold Price Surges Towards $4,000 as Central Banks and Geopolitics Drive Demand
Gold prices have been surging, with the precious metal nearing the symbolic $4,000 mark. HSBC predicts this trend will continue until 2026, driven by central bank purchases and geopolitical factors.
HSBC, a leading global bank, expects central banks to keep buying gold in significant quantities until 2026. This prediction comes as the gold price approaches the $4,000 threshold, reaching $3,945 per troy ounce on Monday afternoon.
Experts attribute this rise to expectations of US interest rate cuts, which make gold, a non-yielding asset, more attractive. Additionally, the ongoing US government shutdown is supporting the gold price surge. The budget standoff between Republicans and Democrats has continued over the weekend, causing uncertainty and driving investors towards safe haven assets like gold.
International actors, such as China, Russia, India, and Turkey, have been stocking up on gold. These countries are reducing their dependence on the US financial system by increasing their gold reserves. This trend, along with continued US-China trade tensions, is further boosting the gold price.
HSBC predicts the gold price could reach $4,000 very soon, driven by central bank purchases and geopolitical factors. The US government shutdown and expected US interest rate cuts are also supporting the gold price rise. As gold is seen as a safe haven, investors are likely to continue buying gold, potentially pushing the price even higher.
