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Gold prices were up nearly one percent on Tuesday, trading at $1,364.40 as of 3:27 p.m. EST.
Gold prices were up nearly one percent on Tuesday, trading at $1,364.40 as of 3:27 p.m. EST. The yellow metal is now up almost 28 percent year-to-date.
Despite losing a bit of ground in July, gold prices have been steadily rising throughout the year, with some analysts calling for the metal to hit $1,400 per ounce before 2016 is through.
A weaker US dollar, combined with political and economic uncertainty, has helped drive gold prices higher. The US Federal Open Market Committee once again failed to raise interest rates last month, and some market watchers are questioning whether the Fed will raise rates in September, as officials have stated.
Earlier this year, Britain’s vote to leave the European Union caused gold to skyrocket.
Indeed, many are hailing the start of a bull market for gold. According to CBC News, a report issued by RBC Capital Markets in July predicts that gold could reach $1,500 per ounce by 2017. Also in July, Thomson Reuters GFMS revised its forecast for the 2016 average gold price from $1,184 per ounce to $1,279 per ounce.
As per the latest FocusEconomics Consensus Forecast Commodities report, 9 out of 29 analysts surveyed revised their pricing forecasts upward for Q4. Though most are expecting gold to average around $1,250-$1,300 for the last quarter of the year, JP Morgan is calling for $1,400 per ounce gold.
“We’re recommending our clients to position for a new and very long bull market for gold,” JPMorgan Private Bank’s Solita Marcelli told CNBC back in May. “$1,400 is very much in the cards this year.”
Gold last traded above $1,400 per ounce in May 2013.
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Securities Disclosure: I, Teresa Matich, hold no direct investment interest in any company mentioned in this article.
