Gold is having its best year in 14 years – Commerzbank

The price of gold continues to rush from record high to record high. The last so far was reached this morning at $2,640 per troy ounce. That’s $110 more than the all-time high just five weeks ago, which lasted until mid-September, notes Commerzbank commodity analyst Carsten Fritsch.

China’s optimism has been exaggerated

“Gold benefits from its role as a store of value in times of inflation and uncertainty and as an interest-free investment in times of falling interest rates. Gold price strength is by no means limited to the US dollar. In many other currencies, such as the euro, the pound sterling, the Swiss franc, the Chinese renminbi and the Indian rupee, the price of gold is also at a record high.”

“We raise our year-end gold price forecast to $2,600 per troy ounce (previously $2,500). The price of gold could be under pressure. We can still imagine a further rise in prices in the short term. However, this is unlikely to be permanent.”

“Therefore, we are confirming our price estimate of $2,600 for mid-2025. As the Fed’s current forecasts show no interest rate hike for 2026, we are also raising our price forecast for the end of 2025 to $2,600 per ounce troy (previously $2,550).