Gold price ends the second quarter with its third consecutive record-high

[View this email in your browser]( [Youtube]( [Kitco Metals]( Editor's Picks [@neils_C]( The [gold market]( may be stuck below $2,350 for now, but that hasn’t stopped prices from achieving new records. Friday’s close marks the end of the second quarter, and the precious metal has notched a new all-time record quarterly closing price for the third consecutive quarter. The yellow metal is ending the week around $2,336 an ounce, up more than 5% from the end of the first quarter. Meanwhile, on an annual basis, [gold prices]( are up a whopping 21% from the end of the second quarter of 2023. Looking at gold’s long-term chart, it's not surprising why many commodity analysts remain extremely bullish on gold. Not only does the price have solid fundamental macroeconomic support, but the chart shows a clear uptrend. While gold has room to move lower in the near term, it is difficult to see how the current trend materially shifts. While its long-term fundamentals remain firmly in place, the market still lacks a catalyst that will spark a new rally to all-time highs. Investors continue to focus on gold’s opportunity costs as the Federal Reserve maintains its aggressive monetary policy. However, we are starting to see shifting signs in the marketplace as investors look for safe-haven alternative assets. [This week, State Street Global Advisors, in collaboration with the World Gold Council, released their annual Gold Perceptions Survey.]( The survey polled 525 North American professional investors, and surprisingly, 29% expect to increase their allocation to the precious metal in the next 12 to 18 months. The survey also showed just how much more active investors have been in gold this year. Nearly nine out of 10 advisors (~85%) surveyed said they have some allocation in the precious metal, up from 69% in 2018 and 76% in 2019. [As to what will be the catalyst for gold, Michael Widmer, commodity analyst at Bank of America, has a few ideas.]( This week he increased his gold price forecast, seeing it hit $3,000 an ounce in the next 12 to 18 months. Widmer added that investors won’t jump into the gold market until they get clear signaling from the Federal Reserve that it is embarking on a new easing cycle. However, he also noted that gold’s attractiveness is growing as central banks worldwide reduce their exposure to the U.S. dollar and Treasuries. Although a breakdown in U.S. Treasuries is not Bank of America’s base-case scenario, it did warn investors that because of growing government debt, risks in the global economy are rising, and the U.S. bond market looks fragile. Widmer said that the U.S. Treasury market is one shock away from not functioning seamlessly. “Looking at the UST tail risk, how could this actually play out? In our view, a sharp move higher in rates would initially be accompanied by lower gold prices,” Widmer said. “That said, the search for a ‘safe-haven’ asset will ultimately divert flows into the gold market, so the yellow metal will then likely pick up. The long-standing inverse relationship between gold and rates has become more tenuous already and, in our view, this is unlikely to change going forward.” So for now, sit tight and enjoy the summer. To all our Canadian readers: Happy Canada Day. To our American readers: Happy Fourth of July. Neils C. Editor's picks [Fed rate cuts and friction in the bond market could drive gold prices to $3,000 in the next 12 to 18 months - Bank of America]( rate cuts and friction in the bond market could drive gold prices to $3,000 in the next 12 to 18 months - Bank of America]( [Election Outcomes and Oil: Trump vs. Biden's Impact on Global Supply - Rory Johnston]( Outcomes and Oil: Trump vs. Biden's Impact on Global Supply - Rory Johnston]( [US Dollar to Get Re-Priced from ‘Widely Overvalued’ Levels, Massive Impact on Gold, Bitcoin Targets]( Dollar to Get Re-Priced from ‘Widely Overvalued’ Levels, Massive Impact on Gold, Bitcoin Targets]( [As Banks Pass Stress Tests, Do Biden and Trump’s Crypto Policies Signal Change? - Kitco News]( Banks Pass Stress Tests, Do Biden and Trump’s Crypto Policies Signal Change? - Kitco News]( [Kitco News]( [Gold price capped at $2,350 as U.S. core PCE rises 0.1% in May, in line with expectations]( [Gold market is building a staircase to $2,400 and beyond - Joy Yang of MarketVector Indexes]( [$3,000 gold by 2025 is ‘not crazy’, miners have ‘significant upside over the next 12 months’ – Sprott’s John Hathaway]( [Can Bitcoin and gold ETFs coexist? New fund aims for diversification with leverage]( [Gold prices lack momentum after breakdowns in drivers and relationships, caution is warranted – ABN Amro]( [29% of North American financial advisors to increase gold allocation through 2025 - State Street-World Gold Council]( [Gold the best hedge against inflation and geopolitical risk, price will rise 16% to $2,700 by year-end – Goldman Research]( [‘Cold War 2.0’ just one reason why gold will outperform silver, base metals in H2 2024 – Bloomberg’s McGlone]( [BMO Capital increases gold and silver forecasts, sees rally in the final months of 2024]( [VanEck files first Solana ETF application in the US, Ether ETFs could launch by July 4]( [Rule Symposium]( [Wall Street will sit on the sidelines next week, Main Street divided on gold’s price prospects]( [Gold Live App]( [Kitco Mining]( [Why the gold miners' price moves are unusual - Sprott's Ryan McIntyre]( the gold miners' price moves are unusual - Sprott's Ryan McIntyre]( ['Deeply embedded' carbon markets should weather government changes - Kraneshare's Luke Oliver]( [China's mineral dominance: What it means for the west - Heather Exner-Pirot]( [Kitco Gold Chart]( [Kitco Gold Chart]( Technically Speaking Jim Wyckoff Market Analyst and Columnist jwyckoff@kitco.com Promotion [Transformer]( This message was intended for {EMAIL} , as a subscriber and/or customer of Kitco. [Advertising]( | [Update Your Email Preferences]( | [Privacy Policy]( | [Contact us]( | [Unsubscribe]( All logos, brand names and/or trademarks that appear here are the property of their respective copyright holders. © 2024 Kitco Metals Inc. 620 Cathcart, Suite #900, Montreal, Quebec, H3B 1M1 Canada.