Gold Hits Record High Amid Market Turmoil as Equities Tumble
Gold surged past $4,300 an ounce, marking a historic milestone with its market capitalization breaching $30 trillion. The rally was fueled by escalating U.S.-China tensions and growing expectations of a Federal Reserve rate cut this month. Investors flocked to the safe-haven asset as geopolitical risks and market volatility intensified.
Bank of America revised its bullish outlook, projecting gold could reach $5,000 by 2026, with an average price of $4,400. Silver forecasts were similarly upgraded to $65. The bank noted that a 28% increase in investor buying WOULD be required to push gold to $6,000.
Meanwhile, equities faced sharp declines. The Dow Jones dropped 301 points, erasing earlier gains, while the S&P 500 and Nasdaq fell 0.6% and 0.5%, respectively. Regional banks bore the brunt of the sell-off, with Zions Bank plunging 13% on loan losses and Western Alliance tumbling 11% amid fraud allegations.
