Due to the implementation of monetary easing policies by major central banks and the fierce competition in the US presidential election, the bulls in the gold market are betting on a surge in gold prices to a new record, with $3,000 as a milestone becoming the focus.

Spot gold reached a historical high of $2,572 per ounce on Friday and is expected to achieve its strongest annual performance since 2020, with a rise of over 24% driven by geopolitical and economic uncertainties, as well as strong central bank purchases.

Aakash Doshi, Head of the North American Commodity Department at Citi Research, stated that with the support of factors such as US interest rate cuts, strong demand for gold ETFs, and off-exchange physical demand, the price of gold may reach $2,600 per ounce by the end of 2024 and $3,000 by mid-2025.

Last week, the World Gold Council stated that global physically-backed gold ETFs received continuous inflows for the fourth consecutive month in August.

With the approaching meeting of the Federal Reserve on September 18th, it is widely expected that the Fed will implement its first interest rate cut since 2020. Low interest rates are often favorable for gold as gold does not generate interest.

The CME Group's FedWatch Tool shows that there is a 55% probability of a 25 basis point rate cut by the Federal Reserve and a 45% probability of a 50 basis point rate cut.

Peter A. Grant, Vice President and Senior Metals Strategist at Zaner Metals, stated that if upcoming US economic data point to risks of economic growth and weakness in the labor market, the probability of a 50 basis point rate cut in November or December will increase, which would boost gold and potentially achieve the $3,000 target ahead of schedule.

The easing actions of major central banks are underway, with the European Central Bank announcing a second 25-basis-point rate cut on Thursday.

Joseph Cavatoni, a market strategist at the World Gold Council, said, "We are also evaluating other factors, including the potential uncertainty of the upcoming US presidential election and gold as a hedge against immediate event risk."

The upcoming presidential election on November 5th may drive up the price of gold, as potential market volatility could prompt investors to turn to safe-haven gold.

Daniel Pavilonis, senior market strategist at RJO Futures, said that reaching the target of $3000 per ounce is possible, adding that this scenario could be driven by political turmoil that may occur after the election.

Investment banks and analysts are becoming increasingly optimistic about gold, with Goldman Sachs stating that gold has the greatest potential for price increases in the near future and remains their preferred hedge against geopolitical and financial risks.

Macquarie Bank has raised its gold price forecast this week and expects the quarterly average price of gold to reach $2600 per ounce in the first quarter of next year, possibly surging towards $3000.

Macquarie analysts said, "While the fiscal outlook in the US continues to be a structural positive for gold, the current price already includes a lot of expectations, and there may be periodic headwinds later next year."