You can almost smell the panic brewing in Washington. The Fed’s been trying to put out the inflation fire with rate hikes, but now they’re about to yank the wheel the other way — and that’s about to light a fire under gold prices.
Ewa Manthey, a commodities strategist over at ING, just raised her gold price forecast in a big way. She’s now calling for gold to average $3,400 in the third quarter and $3,450 in the fourth. That’s a jump from her earlier call of $3,200. And it doesn’t stop there — she sees prices breaking above $3,500 in early 2026 and averaging $3,512 that year.
Why? Because ING now expects the Fed to slash interest rates aggressively — three cuts before the end of this year, and two more in early 2026. That’s way more than the market was expecting just weeks ago. And every time the Fed cuts rates, gold becomes that much more attractive. Remember, gold doesn’t pay interest, but when the alternative is a shrinking yield on a shaky dollar, it starts looking like the only safe place to park your wealth.
The CME FedWatch tool says there’s a 90% chance of a cut next month, and a coin-flip chance of three cuts by year-end. But there’s another wild card in this story — political pressure at the Fed. Governor Adriana Kugler just resigned, opening the door for Trump to put in someone who’s all-in on rate cuts. Trump has never been a fan of Powell, and Powell’s term is up in May. That’s got people worried about the Fed’s independence — and that kind of uncertainty is pure rocket fuel for gold.
It’s not just nervous investors piling in. Central banks have been buying gold hand over fist to get away from the U.S. dollar, and investment demand for gold-backed ETFs in the first half of this year grew at the fastest pace since early 2020. Even though ETF holdings are still below their 2018 record, the momentum is there.
The reality is this: central banks are buying, Trump’s trade battles are still raging, geopolitical tensions haven’t cooled off one bit, and the Fed is about to start flooding the system with cheap money again. All the pieces are lining up for a monster move in gold.
If you’ve been sitting on the fence, this is your wake-up call. You don’t wait until the fire alarm is blaring to buy insurance — you get ahead of the stampede.
Don’t Get Caught Holding a Bag of Dollars
The coming rate cuts could be the match that sends gold roaring past its all-time highs. Protect yourself before the rush. Download Bill Brocius’ free eBook “Seven Steps to Protect Yourself from Bank Failure” and learn how to safeguard your wealth before it’s too late.
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