Gold’s allure is shining brighter than ever, with US and European investors flocking to the precious metal like moths to a flame. Since late 2022, gold has been on a scorching run thanks to institutional buying, expectations of rate cuts, and growing international demand from China and India. Now at $2.5K per ounce, the World Gold Council’s John Reade believes Western speculators and investors are the “fast money that has been driving gold.”

• Since May, investors have poured ~$7.3B into physically-backed gold ETFs — marking the seventh week of positive inflows in the past eight weeks and an increase of 90.4 tonnes in physical gold holdings.
• With a 23% gain this year, gold futures have surpassed most major assets, including the S&P 500 — making gold one of 2024’s top-performing metals.

Not settling for silver: With the Fed widely expected to begin cutting interest rates in September, investors are betting that gold will continue its ascent. UBS Global Wealth Management predicts gold prices could reach $2.6K per ounce by year-end, driven by central bank demand and increased ETF activity. However, some analysts caution that profit-taking could lead to short-term pullbacks. With central banks stockpiling gold and geopolitical uncertainties looming, the precious metal’s appeal as a safe haven is stronger than ever.