Gold prices are up on Thursday morning. Precious metals experienced a surge today, driven by expectations of a more accommodative Federal Reserve stance following Wednesday’s underwhelming Job Openings and Labor Turnover Survey (JOLTS) report. Additionally, the Federal Reserve’s Beige Book, released Wednesday afternoon, indicated a cooling U.S. economy, highlighting diminishing demand for hiring and an increased likelihood of layoffs. The week’s most anticipated U.S. economic indicator, the monthly employment situation report from the Labor Department, is scheduled for release on Friday morning. The price of gold is trading at $2,522.49, up $26.77. The price of silver is trading at $28.82, up 55 cents.

Goldman Sachs predicts gold will reach $2,700 per ounce by early 2025, representing a 7% increase from current levels. The bank cites three main reasons for this bullish outlook: continued central bank purchases driven by fears of US financial sanctions and sovereign debt concerns, imminent Federal Reserve rate cuts attracting Western capital back to the gold market, and gold’s value as a hedge against geopolitical shocks.

The demand for gold has been strong, with the commodity up 21% year-to-date, outperforming the S&P 500. Goldman Sachs analysts, led by Samantha Dart, believe gold stands out among commodities for its near-term upside potential. China’s central bank, despite recent softening in demand due to high prices, is likely to reenter the market with significant purchase orders if gold prices decline slightly, providing a safeguard against major price drops.