Rising gold prices: $7,000 per ounce comes into view

According to The Financial News, the international gold rally is continuing, and some analysts now expect prices to break through $7,000 per troy ounce (31.1 grams).
On the 21st (local time), spot gold rose 2% to $4,887.19 per ounce, surpassing both the $4,700 and $4,800 levels for the first time in a single day.
This surge is being attributed to signs of a renewed trade war, as the United States of America (U.S.) and Europe threaten each other with tariffs over Greenland. Investors are watching closely to see how much further prices could climb.
Gold prices have jumped 75% over the past 12 months.
Daniel Ghali, head of commodity strategy at TD Securities, said that the situation in Japan "is raising concerns about market-driven value erosion on a global scale," adding, "The gold rally is built on trust. That trust has been somewhat shaken, but it has not completely collapsed. If trust does collapse, the rally could last much longer."
Analysts remain optimistic about the strength of the gold bull market.
The London Bullion Market Association (LBMA) expects prices to exceed $5,000 this year, driven by factors such as a U.S. interest rate cut, monetary easing by the Federal Reserve System (Fed), and central banks’ moves away from the dollar.
Nicky Shiels, a metals strategist at MKS PAMP, noted that geopolitical tensions have not gone away and forecast a 30% rise this year to around $5,400.
Dan Struyven, global head of commodities research at The Goldman Sachs Group, projects gold will reach $4,900 by year-end, while ICBC Standard Bank strategist Julia Du expects it could climb as high as $7,150.
They argue that investors are flocking to gold in response to U.S. strategies toward the Bolivarian Republic of Venezuela and Greenland.
Additional buying by Narodowy Bank Polski (NBP), one of the largest institutional gold buyers, is also expected to support the rally.
The National Bank of Poland (NBP) has approved the purchase of an additional 150 tons of gold this year.

jjyoon@fnnews.com Reporter Yoon Jae-jun Reporter