State Street Global Advisors: Gold prices expected to break upwards by the end of the year or early next year, rising to the 4,500-5,000 USD level

State Street Global Advisors stated that spot gold has recently been consolidating around the support level of $4,000 per ounce, and the gold options market indicates that gold prices may remain in a range-bound pattern in the short term. The firm expects gold prices to fluctuate slightly above $4,000 per ounce in the third quarter, and, supported by robust physical gold demand from China and continued gold reserve accumulation by emerging market central banks, may break upward toward $4,500 to $5,000 per ounce from year-end to early 2027.

State Street noted that after four consecutive months of negative returns for spot gold prices from March to June, prices rebounded 1% in July, but are still down 6.3% year-to-date. Meanwhile, gold funds are showing signs of stabilization in capital flows, reflecting investors entering the market to buy at lower prices.

Additionally, the Federal Reserve kept interest rates unchanged at its July meeting, but three committee members voted in favor of a rate hike. The firm pointed out that the precious metals market has largely priced in the Fed’s tendency toward tighter monetary policy. If the Federal Reserve maintains rates for a longer period, it is expected to be a positive factor driving gold prices higher.

Editor: Zhu Henan