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Gold Prices Set To Surge Again Amid Global Demand And Limited U.S. Rate Cuts

New Delhi [India]: Gold prices are expected to rise once more, driven by a combination of global demand and expectations that the U.S. Federal Reserve will implement fewer interest rate cuts this year, according to a report by Gulf News on Wednesday.

The report highlights a renewed upward momentum in gold prices, supported by a bullish market outlook, strong investor sentiment, and continued robust buying—particularly from China. These factors are playing a key role in pushing prices higher.

U.S.-based investment bank JP Morgan recently forecast that gold prices could soar to USD 6,000 by 2029, aligning with the end of U.S. President Donald Trump’s current term.

Despite gold trading near record highs, China’s demand remains unwavering. In fact, gold imports into China reached their highest level in nearly a year last month. This surge came after the country’s central bank reportedly relaxed import restrictions to accommodate increasing demand. Gold shipments rose sharply by 73 percent compared to the previous month, totaling 127.5 metric tons.

In contrast, top officials from the U.S. Federal Reserve—New York Fed President John Williams and Vice Chair Philip Jefferson—have maintained a cautious, “wait-and-see” approach. This stance has led many market analysts to believe that the likelihood of an interest rate cut in June is low. Typically, higher interest rates reduce the appeal of non-yielding assets like gold.

Earlier this year, gold prices peaked at a historic USD 3,500.05 per ounce on April 22, fueled by geopolitical uncertainty. Although prices later retreated due to easing trade tensions between the U.S. and China, the metal remains over 20 percent higher this year.

This performance has been underpinned by steady inflows into gold-backed Exchange Traded Funds (ETFs) and a surge in speculative interest in China. Additionally, while the U.S. dollar marked its fourth consecutive weekly gain last week amid shifting risk sentiment and Federal Reserve signals, a stronger dollar generally reduces gold’s appeal to investors.

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