Price of gold for 1g: 71.0081 € (0%)    Price of silver for 1g: 0.9076 € (0%)   Price update for 5:00

Gold Price Breaks All Records and Reaches Highest Levels in History

The price of gold has reached a new historical record. On Sunday and Monday, gold on international markets surpassed the value of $2,100 per ounce. This exceeded the previous peak of $2,078 per ounce set in August 2020, with a new “benchmark” set at $2,148.99 per ounce. Despite a slight correction in price, stabilizing around $2,065 per ounce, analysts expect precious metals to continue rising until the end of the year, and foresee 2024 providing new opportunities to break price records.

Uncertainty and Lower Interest Rate Elevate Gold

The value of gold has been consistently rising over the past two months. This trend has been driven by the Israeli-Palestinian conflict, as well as expectations that the Fed and the European Central Bank will lower interest rates. Analysts anticipate that these factors, along with geopolitical instability, the likely weakening of the US dollar, will keep the price of gold above $2,000 per ounce throughout 2024.

“The price of gold in 2024 could reach $2,200 per ounce. The anticipated retreat in both the USD and interest rates across 2024 are key positive drivers for gold,” said Heng Koon How, Head of Market Strategy, Research, and Global Economics at the leading Asian bank UOB, in an interview with CNBC. His sentiments are echoed by Nicky Shields from the refinery and mint MKS PAMP, believing that gold will surpass the $2,200 per ounce mark.

New Year Brings New Records

Some analysts are even more optimistic, announcing the potential testing of the $2,500 per ounce boundary. Gareth Soloway, Chief Market Strategist at InTheMoneyStocks.com and President of VerifiedInvesting.com, told Kitco News ” calculated target for 2024 sits at $2,534.” However, Matt Simpson, an analyst for CityIndex and Forex.com, cautioned on the X platform that stock traders must be cautious in their expectations, as the price surge to record levels occurred during a period of low gold trading volume.

Goldman Graff office in Rijeka

With implied caution, investors in gold bars and coins should consider not only technical analyses indicating future rises in the prices of precious metals but also the fundamental analysis of factors influencing prices. Gold is most sought after in times of global uncertainty, both political and economic, and 2024 will be marked by them.

” Next year is going to be a recession year. It’s not the end of the world. It’s part of the business cycle, and next year will be a hard landing year. We’re going to have a severe delinquency and default cycle… a lot of property being transferred from weak hands to strong hands, but we’re going to have a very significant real estate deflation,” conveyed David Rosenberg, President of Rosenberg Research, to Kitco.

The Goldman Graff team at the Bloomberg Adria conference

The prospects of gold and other asset classes in 2024 were the main topic of the “Future of Investment” conference organized by Bloomberg Adria last week. Ivan Odrčić, an analyst from this financial media outlet, forecasted that “we are entering a period where the real estate crowd won’t be as joyful,” while Vladimir Potočki, the CEO of Goldman Graff, emphasized that “the strength of the dollar, inflation, and fear are affecting gold prices.”

“The Fed is thinking about interest rate cuts, and the European Central Bank is expected to do the same. Investments will need to be diversified into other types of assets. The market hasn’t fully recovered from numerous shocks yet, the recession has been postponed, but the question remains about the investors’ appetite for risk. In that aspect, I believe gold will once again prove to be the winner. Demand and prices will rise,” said Davor Žic, a member of the Goldman Graff board, during the panel discussion.

 

(Source: CNBC, Kitco News, Bloomberg)

 

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