With markets pulling back on GDP numbers, gold prices are still pushing aggressively higher. Last checked, the metal was up to $2,325.84.
From here, analysts say it could rally to $2,500, even $3,000 by the end of the year.
That’s according to David Rosenberg, the founder and president of Rosenberg Research, as noted by MarketWatch.com.
In addition, according to Citi analysts, gold could reach that level in the next six to 18 months thanks to investor inflows and hopes the Federal Reserve will cut interest rates.
Helping, there’s major safe-haven buying, and continued interest from global central banks, most notably China. Also, as noted by Business Insider, “The People’s Bank of China, or PBOC, has been snapping up gold for 17 straight months, according to a report from the international trade association World Gold Council. This buying spree coincides with a trend among central banks globally to diversify their holdings to reduce their reliance on the US dollar.”
Also, thanks to the gold rally, related stocks like Newmont (NEM) are out with solid earnings.
NEM posted adjusted EPS of 55 cents from 40 cents year over year. That was above expectations for 49 cents. Revenue of $4.02 billion beat expectations for $3.65 billion.
“Newmont delivered a strong first quarter operational performance, producing 2.2 million gold equivalent ounces and generating over $1.4 billion in cash from operations before working capital changes,” said Tom Palmer, President and CEO of Newmont, as quoted by Kitco.com. “Underpinned by the gold industry’s leading portfolio of Tier 1 gold and copper operations, we remain well-positioned to achieve our full-year guidance and deliver meaningful synergies and productivity improvements from the combined portfolio.”
With plenty of safe-haven and central bank interest in gold, prices could easily soar higher.