This episode explores the recent surge in gold prices and its potential for continued growth. Against the backdrop of a 25% gold rally in 2024 driven by central bank demand and the US Fed's rate cuts, the price breached $3,000 an ounce in March 2025 and continues to rise. More significantly, the ongoing increase is attributed to sustained central bank demand, the return of ETF inflows, and a weakening US dollar, creating a favorable environment for commodities. For instance, the speaker highlights the structural shift in central bank gold purchases since 2022 and the potential for further growth in ETF investments. However, the analysis also acknowledges potential demand destruction in the jewelry sector due to price sensitivity. Despite this caveat, the overall outlook remains bullish, projecting a price increase to approximately $3,500 an ounce by the third quarter of 2025, driven by a combination of physical buying, macro factors, and safe haven demand amid rising inflation and growth risks. This suggests a strong positive outlook for gold investments in the near future.
