Sept 24 Reuters Major banks expect gold to extend its recordbreaking price rally into 2025 because of a revival in large inflows to exchangetraded funds ETFs and expectations of additional interest rate cuts from prominent central banks around the world, including the U.S. Federal Reserve.

Strong physical demand from China and central banks supported gold prices over the past two years, but investor flow, and retailfocused ETF builds in particular, continue to hold the key to a further sustained rally over the upcoming Fed cutting cycle, analysts at J.P. Morgan said in a note on Monday.

Nonyielding gold has gained nearly 570 an ounce, or over 27, so far this year, putting it on track for its biggest annual rise since 2010 and positioning itself as one of the standout assets of 2024. The precious metal hit a record high of 2,639.95oz earlier on Tuesday and has notched record highs several times this year.

Despite reaching multiple highs this year and outperforming major stock indices, we believe gold has more room to run over the next six to 12 months, analysts at UBS said in a note last month, adding that key factors in our view include a revival of large inflows to exchange traded funds ETFs something that has been missing since April 2022.

The Fed began its easing cycle last week with a halfpercentagepoint rate cut, and forecast another 50 basis points of cuts by the end of this year and a full percentage point of cuts next year.

Zeroyielding bullion tends to…