The Federal Reserve meeting is approaching, and analysts expect gold prices to hit $3,000 an ounce next year

Gold prices have reached several highs this yearAnalysts expect gold prices to reach new highs, and with the Federal Reserve meeting approaching, some analysts expect gold prices to hit 3,000 an ounce next year.dollar。

Gold prices held steady at an all-time high of $2,508.14 an ounce in the previous session, while U.S. gold futures rose 0.16 percent in Asian session on Monday to set a new record of $2540.8 an ounce, extending Friday's gains, according to FactSet data.

(One-hour chart of gold prices)

foreign exchange trading platform"Gold prices are expected to hit multiple highs in 2024," said Sabrin Chowdhury, head of commodities analysis, noting gold's attractiveness as a safe-haven asset.

"The gold boom comes from uncertainty... and uncertainty is at its peak," she added, referring to elections in 2024, the conflict between Ukraine and Russia and rising tensions in the Middle East.

Israel and Iran appear to be on the brink of direct conflict. Iran vowed to retaliate after Hamas political leader Hania was assassinated in Tehran earlier this month. Israel has put its forces on high alert, and the United States has sent an aircraft carrier strike group and a missile submarine to the region to bolster its ally's defenses.

Another factor driving gold prices higher is the growing likelihood that the Federal Reserve will cut interest rates in September. The July meeting of the Federal Reserve strengthened investors' confidence that next month's rate cut is "on the table".

"Gold could hit $2,700 an ounce once the Fed starts cutting rates, probably next month," said BMI analysts. Other analysts were similarly upbeat.

Lower interest rates lower the opportunity cost of buying gold, making it more attractive relative to interest-bearing assets such as US Treasuries, which compete with gold as a haven.

Lower interest rates are also putting pressure on the dollar, making dollar-denominated gold attractive to holders of other currencies.

Analysts at Citi said in a report on Monday that gold investor confidence is expected to rise over the next three to six months.

The bank added that they expect a gold price target of $3,000 an ounce by mid-2025, with an average price forecast of $2,550 an ounce in the fourth quarter.