Gold price hits historic high
The price of gold touched an all-time peak on Monday, soaring past $2,100 per ounce as the global safe-haven rush continues.
Spot gold prices rose to record high of $2,110 per ounce before giving up some gains to trade at $2,090 as of 11:45 GMT.
The rally in the world's oldest asset has been going on for two consecutive months, driven by safe-haven investor demand in the wake of global uncertainty and geopolitical tensions, as well as recession fears, and expectations of interest rate cuts by the US Federal Reserve.
According to the CME FedWatch Tool, markets are now pricing in more than 50% odds of a US interest rate cut in the first quarter of 2024.
“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. He estimated that gold prices could climb to $2,200 by the end of 2024.
A recent survey by the World Gold Council showed that more than 20% of all central banks intend to ramp up their gold reserves in the next 12 months, as they increasingly grow pessimistic about the US dollar as a reserve asset.
Investors traditionally turn to gold in times of market uncertainty to hedge risks and as a store of value. For thousands of years, bullion has been seen as a safe haven during periods of economic instability, stock market crises, military conflicts, and pandemics.
Experts and traders project that gold prices are on course to hit fresh highs next year and could remain above the $2,000 level.
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