Gold Prices Surge 2% Weekly As Global Factors Align
Date
10/18/2024 3:16:30 PM
(MENAFN- The Rio Times) Gold futures closed higher on Friday, October 18, setting a new record for the second consecutive day. The precious metal's value increased due to ongoing tensions in the Middle East and better-than-expected macroeconomic data from China.
December gold futures on the Comex division of the New York Mercantile Exchange (Nymex) rose by 0.83% to $2,730.00 per troy ounce. During the trading session, gold reached a record high of $2,735.50 per troy ounce.
The metal's price surge coincided with the release of China's economic indicators. China's Gross Domestic Product (GDP) showed an annual expansion of 4.6%, meeting analysts' expectations.
Chinese industrial production and retail sales also exceeded forecasts. Additionally, housing prices and new home sales data in China indicated a slower rate of decline in September.
Ryan McIntyre, managing partner at Sprott Asset Management, expressed optimism about gold's long-term performance. He cited several key factors supporting this outlook, including the ongoing devaluation of the US dollar.
McIntyre also mentioned the precarious fiscal situation of many Western nations and a global desire for a value reserve independent of other assets and institutions.
Analysts at BMI maintain a "neutral to optimistic" stance on gold for late 2024 and the first quarter of 2025. They anticipate support for prices from Federal Reserve rate cuts and geopolitical tensions.
BMI expects spot gold prices to trade between $2,500 and $2,800 per troy ounce in the coming month. Over the course of the week, gold prices advanced by 2%.
These developments highlight the complex interplay between global economic indicators, geopolitical events, and precious metal markets. Investors and analysts continue to monitor these factors closely as they shape the future of gold prices.
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