Bernstein analysts took note of a continued rise in gold prices, attributing the trend to a combination of factors including a weakening US dollar, declining real interest rates, and increasing inflows into Exchange-Traded Funds (ETFs).
The financial research firm noted that these elements, coupled with uncertainties surrounding tariffs and persistent buying by central banks, have been instrumental in propelling gold to new record levels.
In light of these developments, Bernstein has raised its gold price forecast to $2,750 per ounce.
In the first quarter, both the US dollar and real interest rates saw a decline, which Bernstein analysts highlighted as contributing factors to the uptick in gold prices. ETF flows, which tend to follow the cyclical nature of gold prices, have shown a pattern of increased inflows as the value of gold climbs, as detailed in Exhibit 72 of the firm’s report.
Central banks have maintained their role as significant players in the gold market, continuing to purchase gold as part of their strategy to diversify reserve holdings. Bernstein suggests that this trend is likely to persist, supporting the ongoing upward trajectory of gold prices.
Newmont Corporation (NYSE:NEM), a leading gold mining company, has been actively selling its non-core operations and repurchasing shares. Bernstein analysts indicated a growing confidence in NEM’s potential to deliver value amidst the rising gold prices.
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