​Gold is likely to continue its current upward trajectory and hit new all-time highs within weeks, predicts the CEO of one of the world’s largest independent financial advisory and asset management organisations.

The bullish prediction from Nigel Green of deVere Group comes as gold prices reached a record high on Monday – hitting $2,441 per ounce in early Asian trading hours – as recent economic data increased bets for interest rate cuts by the US Federal Reserve.

He comments: “The primary driver behind the recent surge in gold prices is the market’s expectation of interest rate cuts by the Federal Reserve. 

“Traders are predicting nearly two quarter-point cuts from the Fed this year, with November being the most probable starting point. 

“Lower interest rates typically weaken the US dollar, making gold, which is priced in dollars, more attractive to investors as it becomes cheaper for foreign buyers. 

“Additionally, lower interest rates reduce the opportunity cost of holding non-yielding assets like gold, thereby increasing its appeal as a store of value.”

Another significant factor contributing to the bullish outlook for gold is the sustained purchasing activity by the People’s Bank of China (PBoC). 

“April marked the 18th consecutive month of gold accumulation by the PBoC, with an additional 60,000 troy ounces added to its reserves,” notes the deVere Group CEO.

“This continuous buying spree highlights China’s strategic move to diversify its reserves away from the US dollar.

“Chinese investors have also shown a growing preference for gold as a safe-haven asset. With the Chinese economy facing challenges such as a slowing growth rate and trade tensions with the United States, gold offers a reliable hedge against economic volatility. The increasing domestic demand for gold in China further supports its price, creating a solid foundation for future gains.”

The trend of accumulating gold is not confined to China alone. Recent data indicates that countries like Turkey and several nations in the Middle East are also ramping up their gold purchases. 

“This regional demand is fuelled by similar concerns over economic instability and the need to protect wealth from currency fluctuations and potential financial crises.”

Investors worldwide are increasingly viewing gold as a reliable hedge against inflation, currency depreciation, and financial market turmoil. 

This sentiment is reflected in the substantial inflows into gold-backed exchange-traded funds (ETFs) and other gold investment vehicles. 

The robust demand from institutional and retail investors alike underscores the widespread confidence in gold’s ability to preserve wealth and provide security amidst economic turbulence.

“The anticipated interest rate cuts by the US Federal Reserve, continuous gold purchases by the People’s Bank of China, and growing demand from regions like Turkey and the Middle East all contribute to a bullish outlook for gold. 

“The convergence of these multiple factors strongly supports the likelihood of gold hitting new all-time highs within weeks,” concludes Nigel Green.