Media reports said Monday morning that gold prices notched a new record for a second day in a row.
CNBC reported Sunday evening that spot gold prices rose to a new record high of US$2,110.8 per ounce Monday before giving up some gains. It is currently trading at US$2,084.59.
Citing geopolitical uncertainty, a likely weaker US dollar and possible interest rate cuts, analysts say gold prices are on course to hit fresh highs next year and could remain above US$2,000 levels.
Gold prices have reportedly risen for two consecutive months with the Israel-Palestinian conflict boosting demand for the safe-haven asset, while expectations of interest rate cuts have provided further support.
According to CNBC, gold tends to perform well during periods of economic and geopolitical uncertainty due to its status as a reliable store of value.
“The anticipated retreat in both the USD and interest rates across 2024 are key positive drivers for gold,” UOB’s Head of Markets Strategy, Global Economics and Markets Research, Heng Koon How, told CNBC via email. He estimated that gold prices could reach up to $2,200 by the end of 2024.
On Friday December 1, gold reportedly touched US$2,075.09 to surpass a precious intraday record high of $2,072.5 on August 7, 2020, according to LSEG data.
According to a recent survey by the World Gold Council, 24% of all central banks intend to increase their gold reserves in the next 12 months, as they increasingly grow pessimistic about the U.S. dollar as a reserve asset.
Meanwhile, Bloomberg reported Monday morning that the precious metal just touched an intraday record US$2,135.39 an ounce thanks in part to its haven status: the more volatile the world gets and the better gold tends to do.
Bullion has reportedly rallied almost 16% since early October, a surge that was initially sparked at the start of the Israel-Hamas conflict, but has since been driven by bets on the Federal Reserve will shift to monetary loosening early next year.
