Gold prices hit all-time highs

The New York spot price Friday closed at $2,578.60 and December gold futures were trading at $2,606.90 an ounce Friday afternoon. The spot gold price went above $2,500 per ounce on Aug. 15. Spot silver was high at $30.59 per ounce, but that was not a record.

Shares in companies mining gold in Nevada also were up Friday, with Barrick Gold Corp. shares at $20.85, up 27 cents, in late afternoon trading, and Newmont Corp. shares at $53.88, up $1. Kinross Gold Corp. shares were at $9.84, up 6 cents, and Coeur Mining shares were at $7.25, up 41 cents. SSR Mining shares were at $5.91, up 10 cents.

The University of Michigan’s consumer sentiment index ticked up to 69 in its preliminary reading, the highest level since May, and up from 67.9 in August, according to The Associated Press. Neils Christensen of Kitco said the gain was stronger than expected, with economists expecting an increase to 68.3.

The gain was driven by consumers’ perceptions that prices have improved for durable goods, and Joanne Hsu, director of consumer surveys at the University of Michigan, said “consumer sentiment rose to its highest reading since May 2024.”

She said, however, that “consumers remain guarded as the looming election continues to generate substantial uncertainty.”

“Even with cooling inflation and potential Fed rate cuts on the horizon, I think the core factors driving gold’s appeal — like economic uncertainty, geopolitical tensions, and demand for safe-haven assets — are likely to remain strong,” David Hollander, founder of Liberty Group, a wealth management firm in California, told CBS News.

Gold market bulls are locking in bullion prices surging to fresh records, with a milestone of $3,000 per ounce coming into focus, fired up by monetary easing by major central banks and a tight U.S. presidential election race, Reuters wrote.

Gold could reach $3,000 per ounce by mid-2025, driven by U.S. interest rate cuts, strong demand from exchange traded funds, and over-the-counter physical demand, Aakash Doshi, head of commodities, North America at Citi Research said, according to Reuters.

The World Gold Council reported earlier this month that following a strong monthly price increase in July, gold posted another healthy gain in August to finish 3.6% higher at $2,513 per ounce. A model used by the WGC showed gold was pulled higher by a material drop in the U.S. dollar and, to a lesser extent, lower 10-year Treasury yields, as the Fed signaled the time had come for rate cuts.

The market commentary from the World Gold Council’s Gold Hub for August also said that global physically backed gold exchange-traded funds extended their inflow streak to four months, with Western funds contributing the lion’s share.