Spot gold prices reach a new high as it gets past the $2,100 mark per ounce on Monday. With the increase in the Israel-Palestinian conflict, there is a demand for safe-haven gold assets. Hence, the price of gold has been increasing for the last two months. The price of gold will remain above the $2,000 mark even for the next year.
As the global rush for bullion is in its continuing phases, gold prices set a new record on Monday (for the second day in a row). Next year, as well, gold prices will hit fresh highs, and will remain above the $2K mark. This is due to geopolitical uncertainties, a decrease in the strength of the US dollar, and possible cuts in interest rates.
Heng Koon How, the Head of the Markets Strategy at UOB, said –
“The anticipated retreat in both the USD and interest rates across 2024 are key positive drivers for gold.”(source)
As per his estimates, gold prices can even surpass the $2,200 mark by the end of 2024.
Nicky Shiels, the head of metals strategy at precious metals firm MKS PAMP, stated –
“There is simply less leverage this time around vs 2011 in gold … taking prices through $2,100 and putting $2,200/oz in view.”source)
Many experts believe that these prices will continue, and the average price of gold by the second quarter of 2024 will be $2,100. One of the major reasons, according to experts, for a boost in the prices can be attributed to strong central bank purchases.
The World Gold Council stated that 24% of all central banks in the world will try to increase their gold reserves. This is because they are growing increasingly pessimistic about the US dollar as a reserve asset.
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