Gold prices hit 27-year record high amid rapid monthly surge

Gold prices have experienced a historic surge, with the monthly increase of approximately 15% marking the fastest rise since September 1999. The metal reached a peak of $4,697 per ounce, driven by significant ETF inflows and central bank purchases.

Major Wall Street institutions have responded by revising their price targets. Morgan Stanley has updated its long-term outlook toward $5,000, while UBS has extended its forecast timeline, targeting $5,400 by late 2027. Conversely, Wells Fargo has lowered its 2026 and 2027 price range expectations despite maintaining an upward trend. Citi has raised its short-term target to $4,800.

Analysts warn of potential volatility. Saxo Bank’s Ole Hansen noted that such rapid vertical climbs carry the risk of sharp corrections as investors may engage in profit-taking. Factors such as US debt levels, Federal Reserve policy shifts, and fluctuations in the US dollar continue to influence market sentiment and long-term stability.