Gold’s Record-Breaking Momentum: Can It Climb Further?

Gold surged past $3,500 per ounce this week, marking an all-time high with a 34.5% year-to-date gain. Heavy inflows into physically backed ETFs and sustained central bank purchases have tightened supply, while expectations of a Fed rate cut have driven demand for the non-yielding asset.

Central banks and ETF investors dominate the buying. The World Gold Council reported $38 billion in ETF inflows during H1, with Q2 demand hitting 1,249 tonnes ($132 billion). Official purchases remain NEAR record levels, reinforcing a multi-year trend of reserve diversification. Markets now price a 70% chance of a September Fed cut, further reducing gold's opportunity cost.

Technical analysis suggests $3,500 as key support, with resistance near $3,600-$3,700. JP Morgan forecasts an average of $3,675/oz by Q4 2025, potentially exceeding $4,000/oz by mid-2026.