Gold remains on a strong upward trajectory, trading above $2,940 per ounce after marking eight straight weeks of gains.
The rally is largely driven by heavy inflows into gold-backed exchange-traded funds (ETFs), which recorded their largest weekly additions since 2022. Institutional and retail investors have sought the metal as a hedge against uncertainty and as a store of value amid shifting macroeconomic signals.
Reflecting the momentum, Goldman Sachs raised its year-end price target to $3,100, pointing to continued central bank purchases and growing ETF holdings as major support for higher prices. Central banks around the world have been steadily adding to their reserves, while ETF accumulation amplifies the demand picture by making gold more accessible and liquid for a broader range of investors.
At the same time, the U.S. dollar has shown signs of easing, which increases the appeal of dollar-priced assets like gold for holders of other currencies. Recent economic data — including softer business activity readings and weakening consumer confidence — has further shifted market expectations toward monetary easing. Traders are pricing in potential Federal Reserve rate cuts beginning in July 2025, a prospect that typically favors higher gold prices by lowering real yields and reducing the opportunity cost of holding non-yielding bullion.
These combined factors — robust ETF inflows, strategic central bank buying, a softer dollar and changing Fed expectations — have created a supportive environment for gold. While short-term volatility can occur, the prevailing drivers suggest continued interest in the metal from diversified investors looking to manage risk and preserve capital.