Gold kicked off Thursday morning with a bang, smashing through the $2,200-per-troy-ounce mark for the first time ever and picking up right where its record-breaking March rally left off. The front-month futures were hovering around $2,203 recently, a solid 2.1% jump from Wednesday’s close and a hefty 7.7% climb since the start of the month. After a week-long breather, the rally’s back in full swing.
So, what’s fueling this golden surge? Thursday’s spike has a straightforward answer: the Federal Reserve. On Wednesday, the Fed doubled down on its plan to cut interest rates three times this year, even with the economy chugging along nicely and inflation proving a bit stickier than expected. Lower rates are like a siren call for gold investors—since the metal doesn’t pay dividends or interest, it starts looking a lot shinier compared to stocks or bonds when rates drop.
A wild mix of factors has been pushing gold higher lately, but this Fed news was the spark. Looking ahead, plenty of Wall Street pros think gold could top $2,300 before the year’s out. Still, some are scratching their heads about whether it can keep this hot streak going in the near term.
Take Daniel Ghali, a commodity strategist at TD Securities—he pointed out in a Thursday morning note that traders betting on big-picture economic trends already have their gold positions lined up with today’s rate outlook. Plus, those algorithm-driven traders who chase momentum? They’re already “max long,” meaning they’ve loaded up as much as they can. “Overall, we still see few upside asymmetries in gold pricing following this dovish FOMC meeting,” Ghali wrote, even with prices flirting with all-time highs.
It’s a wild ride for gold right now—breaking records one day, leaving analysts guessing the next. Whether it’s got more room to run or takes a breather, one thing’s clear: all eyes are on the shiny stuff.
