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Gold rates achieves legendary high
(MENAFN) The price of gold has reached an unprecedented milestone, surging past USD2,100 per ounce on Monday, marking an all-time high. The remarkable rally in gold prices over the past two months is attributed to sustained safe-haven investor demand amid global uncertainty, geopolitical tensions, recession fears, and expectations of interest rate cuts by the United States Federal Reserve.
Spot gold prices briefly touched USD2,110 per ounce before settling at USD2,090 as of 11:45 GMT.
The surge in gold values reflects the enduring appeal of the precious metal as a haven asset during times of economic and geopolitical turbulence. Market participants are now pricing in over a 50 percent probability of a United States interest rate cut in the first quarter of 2024, contributing to the positive sentiment around gold.
Heng Koon How, UOB’s Head of Markets Strategy, Global Economics, and Markets Research, highlighted the pivotal factors driving gold's upward trajectory, citing the anticipated weakening of the United States dollar and declining interest rates throughout 2024. He projected that gold prices could continue their ascent, potentially reaching USD2,200 by the end of 2024.
A recent survey conducted by the World Gold Council revealed that over 20 percent of central banks plan to bolster their gold reserves in the next 12 months, expressing growing skepticism about the United States dollar as a reliable reserve asset. The traditional role of gold as a hedge against risks and a store of value has been emphasized as investors navigate a complex global landscape.
Gold's historical significance as a safe haven during economic instability, stock market crises, geopolitical conflicts, and health crises continues to resonate with investors. Analysts and traders anticipate that gold prices are poised for further gains in the coming year, with expectations that they will remain above the USD2,000 level. As the safe-haven rush persists, gold's allure as a reliable asset class remains robust in the face of ongoing uncertainties.
Spot gold prices briefly touched USD2,110 per ounce before settling at USD2,090 as of 11:45 GMT.
The surge in gold values reflects the enduring appeal of the precious metal as a haven asset during times of economic and geopolitical turbulence. Market participants are now pricing in over a 50 percent probability of a United States interest rate cut in the first quarter of 2024, contributing to the positive sentiment around gold.
Heng Koon How, UOB’s Head of Markets Strategy, Global Economics, and Markets Research, highlighted the pivotal factors driving gold's upward trajectory, citing the anticipated weakening of the United States dollar and declining interest rates throughout 2024. He projected that gold prices could continue their ascent, potentially reaching USD2,200 by the end of 2024.
A recent survey conducted by the World Gold Council revealed that over 20 percent of central banks plan to bolster their gold reserves in the next 12 months, expressing growing skepticism about the United States dollar as a reliable reserve asset. The traditional role of gold as a hedge against risks and a store of value has been emphasized as investors navigate a complex global landscape.
Gold's historical significance as a safe haven during economic instability, stock market crises, geopolitical conflicts, and health crises continues to resonate with investors. Analysts and traders anticipate that gold prices are poised for further gains in the coming year, with expectations that they will remain above the USD2,000 level. As the safe-haven rush persists, gold's allure as a reliable asset class remains robust in the face of ongoing uncertainties.
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