- Spot Gold reached a record high of $4,078.05 per ounce as major institutions and the BRICS group increased gold reserves.
- Ed Yardeni forecasts gold may hit $5,000 by 2026, with a possible increase to $10,000 before 2030 if current trends continue.
- Gold prices surged by 54% since January amid falling U.S. stock markets and a weaker U.S. dollar.
- The BRICS nations expanded gold reserves to over 12,500 tons, moving gold into the second-most held reserve asset globally, surpassing the euro.
- Experts point to high global debt, expectations of inflation, and ongoing reserve expansion as factors supporting further gold price growth.
Spot gold prices hit an all-time high of $4,078.05 per ounce on Monday as large financial institutions and the BRICS countries, which include Brazil, Russia, India, China, and South Africa, increased their investments in gold. This activity intensified with new record reserves and concerns over global economic trends.
Ed Yardeni of Yardeni Research expects gold prices to reach $5,000 per ounce by 2026. Yardeni said that gold could rise above $10,000 per ounce before 2030 if the rally holds. Gold prices have jumped 54% this year, supported by demand from Wall Street and rising purchases among emerging economies.
Recent events have contributed to this rise. Last week, the U.S. dollar weakened and gold gained 1.5%, following a major drop in U.S. stock markets and renewed trade tensions between the U.S. and China. Analysts, including Ed Yardeni, have noted that the pace of gold price increases has surpassed previous predictions. “We currently expect gold prices to reach $5,000 per ounce by 2026, and if the current rally persists, gold could surpass $10,000 per ounce by the end of this decade (before 2030),” said Yardeni.
According to the article, BRICS central banks added more than 1,000 tons of gold to their reserves in 2024, taking collective holdings above 12,500 tons. Gold is now the second most significant reserve asset in the world, ahead of the euro. China and Russia each hold more than 2,300 tons of gold reserves. Additionally, BRICS announced a trading platform that will use gold, oil, and critical minerals at the 2025 Moscow Financial Forum.
Hamad Hussain, an economist at Capital Economics, says a strong “fear of missing out” sentiment is driving gold trading. Hussain added, “The ‘fear of missing out’ (FOMO) sentiment is permeating gold trading, making it more challenging to objectively assess the metal’s value… the well-known fact that gold does not generate income makes it difficult to objectively value. Overall, we believe that the nominal price of gold may steadily increase in the coming years.”
High levels of global debt have encouraged investors to seek assets like gold as protection if governments allow inflation to manage debt. The combined trends of increasing BRICS gold reserves and heightened institutional buying in Western markets have strengthened predictions that the surge in gold prices could continue in the coming years. For more on recent price trends, see Reuters coverage.
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