
"Central banks, particularly in China and India, are aggressively accumulating gold to diversify reserves as confidence in the U.S. dollar wanes amid rising U.S. debt concerns. Geopolitical tensions, including the war in Ukraine and escalating U.S.-China trade disputes, are also pushing investors toward gold as a safe-haven asset. Persistent inflation, despite cooling in some regions, continues to erode purchasing power, making gold an attractive hedge."
"Expectations of looser monetary policies, with the Federal Reserve signaling potential rate cuts later this year and into 2026, further bolster gold's appeal. Robust demand from exchange-traded fund (ETF) investors and physical buyers in Asia adds to the momentum. Gold's historic breakthrough above $4,300 per ounce last week - a record high for the precious metal - underscores the urgency behind the move. Gold is up 60% in 2025, far outpacing even the stock market's rise."
"Agnico Eagle Mines (AEM) ( Agnico Eagle MinesNYSE:AEM) is a premier gold miner positioned to thrive as gold climbs to $5,000. Operating in stable jurisdictions like Canada, Finland, and Mexico, AEM produces 3.4 million ounces annually, with ambitious plans to boost output through expansions like Detour Lake and Odyssey. The miner's all-in sustaining costs (AISC) of $1,289 per ounce - among the industry's lowest - ensure massive margin expansion at higher gold prices. At $4,300 gold, AEM's free cash flow per share is robust at $4.50, but at $5,000, margins could exceed 60%, potentially doubling cash flow."
Bank of America forecasts gold will reach $5,000 per ounce by 2026 amid a global rush into the metal. Central banks, particularly in China and India, are aggressively accumulating gold to diversify reserves as confidence in the U.S. dollar wanes amid rising U.S. debt concerns. Geopolitical tensions including the war in Ukraine and escalating U.S.-China trade disputes are driving safe-haven demand. Persistent inflation continues to erode purchasing power, while expectations of Federal Reserve rate cuts into 2026 and strong ETF and Asian physical demand further bolster prices. Gold recently broke above $4,300 and is up 60% in 2025.
Read at 24/7 Wall St.
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