1911 Gold Corporation (TSXV: AUMB; OTCQX: AUMBF)
1911 Gold is Manitoba’s Gold Standard - Ready, Permitted and High-Grade 1911 Gold is an Emerging Gold Producer, with Significant Cash Flow Generation and District-Scale Growth Potential
Safe-haven demand and Fed rate cut expectations propel prices to a record high.Gold prices surged to an all-time high on Monday, breaching the $4,100-per-ounce mark for the first time as investors flocked to safety amid renewed U.S.-China trade tensions and strengthening expectations for Federal Reserve rate cuts.
Spot gold climbed 2% to $4,103.05 per ounce, rebounding sharply from a pullback late last week. Gold futures on the COMEX division of the New York Mercantile Exchange jumped nearly 2.9% to $4,124.30. Year-to-date, gold has rallied more than 54%, underscoring its robust momentum amid geopolitical and economic uncertainty.
Gold tends to rise when investors grow anxious about global economic or political stability, said Jeffrey Christian, managing partner at CPM Group. The recent flare-up in trade friction between Washington and Beijing has fueled fears of an escalating trade war, serving as a direct catalyst for the latest breakout.
Beyond safe-haven flows, expectations of monetary easing have further bolstered gold. Since the Fed began its rate-cutting cycle in August, gold has advanced approximately 24%, accounting for nearly half of its year-to-date gains. Markets now see a 97% probability of a 25-basis-point cut at the Fed’s upcoming meeting, with a 100% chance of a third cut priced in for December.
Central banks are also amplifying the bullish narrative. A June survey by the World Gold Council showed 95% of respondent central banks expect global gold reserves to expand over the next 12 months. Over the past three years, central banks have added more than 3,000 tonnes of gold to reserves, with analysts projecting another 1,000 tonnes this year. Emerging market institutions are leading the charge as they diversify away from U.S. dollar assets.
Retail investment demand is keeping pace. Global gold-backed ETFs registered a third consecutive month of net inflows in August, led by Western funds. Société Générale has raised its recommended gold allocation from 7% to 10%, citing the metal’s role as a hedge against inflation and lower interest rates.
In response to persistent central bank buying and a dovish Fed pivot, major financial institutions have upgraded their gold price forecasts for 2025 and beyond. Société Générale and Bank of America recently projected that gold could reach $5,000 per ounce by 2026.
Given the rotation of drivers and the speed of short-term corrections, this rally still has room to run, said Suki Cooper, global head of commodities research at Standard Chartered. A moderate near-term pullback would support a healthier long-term uptrend.
With real interest rates declining, the U.S. dollar’s dominance under scrutiny, and geopolitical risks simmering, gold’ appeal as a store of value is expected to grow. While technical corrections may emerge in the short term, analysts widely affirm the metal’s long-term portfolio role.
