He gold began the week reaching its all-time high buying and selling at $2,137 an oz this Monday morning, then falling 2% to $2,048.
Experts consider that the price of the yellow steel will stay above $2,000 all through subsequent yr for 3 key causes: geopolitical uncertainty, a weaker US greenback and potential rate of interest cuts.
Gold has risen over the previous two months as a result of conflict between Israel and Hamas, plus the market initiatives that the Federal Reserve will start chopping rates of interest in 2024.
Analysts weigh in on the long run of gold
“The expected retreat of both the dollar and interest rates throughout 2024 are key positive factors for gold”, Heng Koon How, head of market technique, world economics and market analysis at UOB, clarified to CNBC.
In this context, he highlighted that the price of the valuable steel may shut subsequent yr close to 2,200 USD the ounce.
“This time there is less leverage in gold compared to 2011. This could take the price to $2,100 and putting $2,200 an ounce in sight” agreed Nicky Shiels, head of metals technique at MKS PAMP.
Bart Melek, head of commodity methods at TD Securities, set a price goal of $2,100 an oz for the second half of 2024, as he believes central banks They will proceed to purchase the steel in massive portions as a refuge.
According to a current survey by the World Gold Council, 24% of all central banks intend to extend their gold reserves within the subsequent 12 months, as a result of potential weakening of the US foreign money.
