Gold and silver traded higher slightly on Wednesday — at $2,655 an ounce and $31.40, respectively — as investors took note of increasing political tensions in France and Korea, adding to an already tumultuous 2024.
South Korean President Yoon Suk Yeol declared Tuesday night the country would be placed under martial law before removing the order hours later. In France, a political movement seeking to oust President Emmanuel Macron is gaining traction amid growing unrest related to domestic policy, including new pension reforms.
Precious metals prices are down more than 5% from record highs following an intensive dollar rally after the election of Donald Trump to the U.S. presidency.
Banks believe $3,000 an ounce is coming
Many major banks are calling for returns to all-time highs and beyond.
JPMorgan holds a positive view of gold and is calling for prices to reach $2,950 an ounce by the fourth quarter of 2025. Goldman Sachs has shown similar expectations and has called for $3,000 an ounce after next year.
Bank of America Global Research Commodities and Derivatives Head Francisco Blanch spoke to Bloomberg TV on Wednesday and said he is also expecting gold to reach a level of $3,000 an ounce by December 2025.
World Gold Council CEO David Tait said, “I do believe that the amount of debt that’s going to be piled on the U.S. economy and perhaps those of Europe and the rest of the world as well is the thing that really underlies the underlying strength of gold.”
He also made a call for $3,000 an ounce by 2025, citing strong demand from Japan, China and India.
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