After a 65% surge, there is still room for growth! Gold breaks through $4370, HSBC urgently raises its target price for 2026 by nearly 30%.

Due to growing concerns about credit quality in the economy and escalating geopolitical tensions driving increased safe-haven demand, coupled with investors betting on the possibility of a significant rate cut by the Federal Reserve this year, both gold and silver prices have hit historical highs. Data shows that in early Asian trading on Friday, spot gold rose by 1.2% to $4379.96 per ounce, reaching a historic high and poised to achieve its largest weekly gain since 2020. Spot silver also rose slightly, hitting a historical high of $54.3775 per ounce before giving back some gains. It is reported that the bankruptcies of American subprime auto loan firm Tricolor Holdings and auto parts manufacturer First Brands have raised concerns among investors that the credit market may face tougher times. The bankruptcies of these two automotive companies have triggered a chain reaction, making bank loan quality once again a market focus. JPMorgan Chase CEO Jamie Dimon mentioned the bankruptcies of these two companies this week, saying, "when you see one cockroach, theres usually more around." Additionally, escalating geopolitical tensions have also driven an increase in safe-haven demand. At the same time, traders are actively betting on at least one significant rate cut by the Federal Reserve by the end of this year. Federal Reserve Chairman Jerome Powell has hinted this week that the Fed plans to cut rates by another 25 basis points later this month. Although the ongoing U.S. federal government shutdown has delayed the release of September nonfarm payrolls, CPI, and other data, once the government resumes operations, a large amount of economic data is expected to be released, potentially revealing signs of economic weakness and supporting further rate cuts by the Fed. Lower borrowing costs generally benefit precious metals, as assets like gold do not generate interest income. Gold prices have surged by over 65% this year, primarily supported by continuous central bank purchases, inflows into gold exchange-traded funds (ETFs), and increasing demand for safe havens in the backdrop of geopolitical tensions, trade tensions, rising fiscal and debt levels, and threats to the Fed's independence. Meanwhile, the silver market has been under pressure due to tight liquidity in London, leading to a global rush to buy silver and pushing London benchmark prices significantly above New York futures prices. As gold prices continue to soar, several Wall Street giants have raised their gold price forecasts.UBS predict that gold prices will rise to $4200 per ounce in the next few months. Morgan Stanley predicts that gold prices will reach $4500 per ounce in the second half of 2026. Goldman Sachs has raised its December 2026 gold price forecast from $4300 per ounce to $4900 per ounce. Bank of America has raised its 2026 gold target price to $5000 per ounce and stated that policy uncertainties driving safe-haven demand will support gold prices reaching $5000. Ed Yardeni, President of Yardeni Research, reiterated his bullish gold forecast, stating: "Our current gold target is $5000 per ounce by 2026. If the current momentum is maintained, we may see it surpass $10,000 before 2030." HSBC is the latest major bank to raise its gold price target. HSBC increased its average gold price forecast for 2025 from $3215 per ounce to $3355 per ounce, citing geopolitical tensions, economic uncertainties, and a weakenin...