And last but definitely not least – the global pivot towards interest rate cuts with the European Central Bank, Bank of England and Federal Reserve inching closer to their first rate cuts in June.
So far this year, along list of the world’s most powerful Wall Street banks from Goldman Sachs, JP Morgan to Citi have continued to reiterate their view that Gold remains their No. 1 pick in Commodities markets as central banks in the U.S and Europe move to reduce interest rates.
Historically, during each and every one of the past five easing cycles, Gold prices have always delivered outsized gains. Interestingly, Gold’s gains have “supersized” when a soft landing has been achieved, which is strongly anticipated to be the case once again.
In a note to clients, analysts at GSC Commodity Intelligence continued to double down on the view that “any substantial pullbacks should be viewed as buying opportunities because Gold prices rarely stay low for long”.
Whichever way you look at it, one thing is clear. The stars appear to be aligning for Gold and it won’t take much for prices to reach $3,000 an ounce, if not exceed that mark in this current macroeconomic environment – a lot sooner than anyone expects.
