The World Gold Council stated that global physical gold ETFs have seen continuous inflows of funds for the fourth consecutive month in August.
COMEX December gold futures rose 1.08% to $2608.40 per ounce at the close, up 3.31% for the week.
Gold inched higher during the Asian morning trading session, with the US dollar moderately weakening.
According to analysts from the research department of Deutsche Bank, another driving factor is the increasing expectations of a rate cut by the Federal Reserve, which has been evident since late last week. These analysts pointed out that the probability of a 50 basis point rate cut by the Fed at this week's meeting, as indicated by interest rate futures, is about 45%. Rate cuts are typically favorable for non-interest-bearing precious metals.
Spot gold rose 0.1% to $2580.17 per ounce.
The World Gold Council stated that global physical-backed gold ETFs saw inflows for the fourth consecutive month in August.
Analysts at Goldman Sachs recently stated that they still expect a 25 basis point rate cut by the Federal Reserve next week, and anticipate rate cuts at every remaining meeting this year (in November and December).
Ole Hansen, Head of Commodities Strategy at Saxo Bank, said that geopolitical risks, fiscal concerns, and potential changes in monetary policy, especially after the US presidential election, together constitute the bullish reasons for gold as a hard asset.
Australia's Macquarie has raised its gold price forecast this week, now expecting the quarterly average peak price in the first quarter of next year to reach $2600 per ounce, with the potential to soar to $3000.
Gold and precious metals related companies: Zijin Mining Group (02899), SD Gold (01787), Zhaojin Mining (01818), Lingbao Gold (03330), China Gold International (02099), Laopu Gold (06181), etc.
Zijin Mining Group (02899), SD Gold (01787), Zhaojin Mining (01818), Lingbao Gold (03330), China Gold International (02099), and Laopu Gold (06181), etc.