Gold prices currently sit at $2,740 an ounce this Monday morning, up significantly from $2,660 at the beginning of last week.
Thursday saw a significant move from the European Central Bank (ECB) as it announced a 25 basis-point cut to its primary interest rate. This cut, the first of its kind in 13 years, carries substantial implications for the gold market.
Typically, lower interest rates from central banks favor higher gold prices. As most big country governments, including the U.S., pivot to easing monetary policy, many financial institutions forecast record-setting gold prices in 2025.
Bank of America recently predicted gold to exceed $3,000 an ounce in 2025. That would mark another 10% increase next year over the 30% increase already realized in 2024.
In World News, Israeli officials say Yahya Sinwar, the architect of the Hamas October 7, 2023 attack, was killed on Friday during a routine ground patrol in Rafah. Just a few months earlier, Israel launched an air strike, killing Hezbollah's top commander, Fuad Shukr, in Beirut, Lebanon.
Last night, the Israeli military launched a series of targeted strikes on Hezbollah's financial operations in Beirut, Lebanon. The escalation of the war in the Middle East between Iran and Israel is undoubtedly a contributing factor to higher prices of precious metals like gold and silver this week.
Iran has been one of Russia's few allies throughout the war against Ukraine, supplying advanced attack drones and ballistic missiles. Iran proxies like Hamas and Hezbollah have seen over a dozen top leaders killed over the past year for retribution for the October 7 attack.
The geopolitical question of the month: Will Russia help Iran against Israel? Russia has military intelligence and advanced air defense and attack capabilities that could prove to be useful for Iran.
Vladimir Putin held talks with Iranian President Masoud Pezeshkian on October 11.
The stakes are high this week. Russia is hosting Iran, China, and other BRICS nations October 22-24 in Kazan, Russia, for an annual summit. The side story of the event will be Russia's support of Iran, as BRICS's current members and 30 rumored other applicant countries will be evaluating partnerships with Russia. Russia is leading the charge for a digital currency, as we discussed in our October webinar at the U.S. Gold Bureau.
As we navigate through regional conflicts and the emergence of a BRICS Pay digital currency, all eyes are on the U.S. Federal Reserve this week. The leadership speeches will provide crucial insights into the Federal Reserve's next interest rate move, making it essential to stay tuned.
The Federal Reserve will meet for an interest rate decision on November 6th and 7th. The U.S. Presidential election is on November 5. We invite you to our next webinar, "How will the 47th President May Affect Gold Prices?."
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byUnited States Gold Bureau