- Spot gold prices rose to a new record high of $2,110.8 an ounce on Monday before giving up some gains.
- Yellow metal price rises for second consecutive month as Israeli-Palestinian conflict increases demand for safe assets
- Gold prices are expected to remain above $2,000 next year as geopolitical uncertainty increases demand for safe-haven assets.
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Gold prices hit a new record for the second day in a row on Monday, with spot prices reaching $2,100 as the global bullion rush looks set to continue.
Analysts say the price of gold is on track to hit new highs next year and could remain above $2,000, citing geopolitical uncertainty, a possible weaker dollar and possible interest rate cuts. He said there is.
Prices of the yellow metal rose for the second month in a row as the Israeli-Palestinian conflict increased demand for safe-haven assets and expectations for interest rate cuts provided further support. Because of its status as a reliable store of value, gold tends to perform well during times of economic and geopolitical uncertainty.
“The expected decline in both the US dollar and interest rates into 2024 is a key positive factor for gold,” Heng Koon Haw, head of global economic and market research and market strategy at UOB, told CNBC via email. ” he said. He predicted that gold prices could reach up to $2,200 by the end of 2024.
Similarly, other analysts are bullish on the outlook for bullion.
Nicky Shields, head of metals strategy at precious metals firm MKS PAMP, said: “Gold is simply less leveraged this time than it was in 2011…prices are above $2,100 with $2,200 an ounce on the horizon.” said.
Spot gold prices rose to a new record high of $2,110.8 an ounce on Monday before giving up some gains. It is currently trading at $2,084.59.
On Friday, gold reached $2,075.09, surpassing its precious intraday high of $2,072.5 on August 7, 2020, according to LSEG data.
Bart Melek, head of product strategy at TD Securities, expects gold prices to average $2,100 in the second quarter of 2024, with strong central bank purchases acting as a key catalyst for pushing prices higher.
According to a recent study by the World Gold Council: 24% of all central banks intend to increase gold reserves Amid growing pessimism about the US dollar as a reserve asset over the next 12 months,
“This means that demand from the public sector is likely to increase in the coming years,” Melek said.
He added that the Fed could potentially change policy in 2024. Lower interest rates tend to weaken the dollar, and a weaker dollar makes gold cheaper for overseas buyers, increasing demand.
See chart…
Gold price in the past 6 months
On Friday, Federal Reserve Chairman Jerome Powell dialed back expectations for more aggressive rate cuts in the future, but his comments suggested the Fed could end its hikes, at least for now.
“We believe in MaiFactors that will push gold higher in 2024 will be Fed rate cuts, a weaker dollar, and higher geopolitical tensions,” BMI, the research arm of Fitch Solutions, said in a recent note.
