Gold futures (GC=F) jumped to a new high of $2,706 per ounce during Thursday's session, giving credence to bulls who claim the precious metal rally isn’t over.
Spot gold also rose to a new high north of $2,690 per ounce.
Year to date, gold is up more than 30%, beating out the S&P 500’s gain of 22% and making it one of the best-performing commodities of 2024.
Central banks have boosted their reserves of gold in recent years, with buying in the first quarter of this year touching a record high compared to the same period last year.
The Federal Reserve’s recent pivot toward lower interest rates has helped accelerate the commodity’s gain in recent months, given it is a non-yield-bearing asset.
"On the investor side, demand from the private investors here in the US specifically is nowhere near the capacity," said Alex Ebkarian, COO and co-founder of Allegiance Gold.
Goldman Sachs analysts recently pointed out in a note that the gold market hasn't fully priced in increased investments into Western physically gold-backed ETFs, a move which tends to be gradual.
The firm raised its price target on the precious metal from $2,700 to $2,900 per troy ounce for early 2025, noting its economists now look for faster declines in short-term interest rates in Western nations and China.
Goldman analysts said the purchases of gold by central banks will remain "structurally elevated."
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.
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