Gold Prices Surge as ETFs Lure Funds and US Dollar Weakens
Gold traded just shy of last week's record as the US dollar eased, and investors weighed a surge in holdings of bullion-backed exchange-traded funds that could help prices challenge $3,000 an ounce. The precious metal has hit successive peaks this year, after climbing 27% in 2024, with mounting concerns over US President Donald Trump's disruptive trade and geopolitical agendas driving demand. Goldman Sachs Group Inc. last week raised its year-end target for the metal to $3,100, saying that central-bank buying would be a key driver.
- The growing popularity of bullion-backed ETFs may signal a fundamental shift in investor preferences, as they increasingly prioritize tangible assets over traditional investment vehicles.
- What are the broader implications of this trend on global financial markets and the role of gold in diversifying portfolios?