Gold Prices Soar to $4,500 as Mining Stocks Outshine Bullion
Gold prices surged to $4,495.79 on Thursday before retreating slightly, as mining company shares more than doubled the percentage gain seen in bullion.
The spot price of gold touched a high of $4,525.79 during the Asian session but eventually fell 0.6% by 03:31 GMT. Meanwhile, mining stocks saw a significant increase, with VanEck Gold Miners ETF (NYSEARCA:GDX) surging 9.25% and Newmont Corporation (NYSE:NEM) climbing 8.5%.
The Federal Reserve's stance on interest rates remains a concern for gold investors, as policymakers are considering increasing rates should inflation persist. However, the current likelihood of a rate hike in September is still uncertain, with futures reflecting a 67% chance of unchanged rates and a 33% probability of an increase.
Gold-backed ETFs have seen inflows of $7 billion in the first half of August, representing around 1.2% of their $582 billion in assets. Analysts are divided on the outlook for gold prices, with J.P. Morgan predicting an average price of $6,000 by Q4 2026 and HSBC targeting $4,450 at end-2026.