The day after the Fed's interest rate cut, gold hits another historic high! UBS predicts that the price of gold will reach $2,700 per ounce by the middle of next year.

Notice that on Thursday, the price of gold futures surged to a historic high. The day before, the Federal Reserve initiated a loose monetary policy, cutting interest rates by 50 basis points. This move is seen as bullish for gold, as lower borrowing costs are beneficial for gold, which doesn't pay any interest. Samer Hasn of XS.com stated that with the decrease in interest rates, gold remains a safe haven for funds, with even greater allure, and that "geopolitical tensions returning to the forefront may also sustain the shine of gold, possibly pushing it to even more historic highs soon." Alex Ebkarian of Allegiance Gold said, "When you combine geopolitical risks with the current deficits, low yield environment, and a weaker dollar, all these factors will lead to an increase in the price of gold." He added that silver should benefit from the environment of rising gold prices. UBS analysts have set a mid-term target for the price of gold in 2025 at $2700 per ounce, while expecting an accelerated pace of gold ETF demand in the coming months. The near-month gold for September delivery on the New York Mercantile Exchange closed up by 0.6% at $2,588.00 per ounce, reaching a historic high, while the near-month silver for September delivery closed up by 2.5% at $31.094 per ounce, still down by 3.4% from the high of $32.205 reached on May 20. Bespoke's Daily Chartbook stated that after the Federal Reserve's interest rate cut, "only in 1998 did the price of gold decrease significantly over the next year, but even then, towards the end of the year, with the start of the internet bubble, the price of gold also saw a surge."