Gold prices set a new record on Monday for the second day in a row, as spot prices touched 2100 dollars.
Analysts said that gold prices are on track to reach new highs next year and may remain above USD 2000 levels, citing geopolitical uncertainty, possible dollar weakness and possible interest rate cuts.
Yellow metal prices have risen for two consecutive months as the Israeli-Palestinian conflict boosted demand for safe-haven assets, while expectations of lower interest rates provided further support. Gold tends to perform well during periods of economic and geopolitical uncertainty due to its status as a reliable store of value.
“The expected decline in both the dollar and interest rates through 2024 is the main positive driver for gold,” said Heng Kun Hao, Head of Market Strategy, global economics and Markets Research at UOB. He predicted that gold prices will reach 2200 dollars by the end of 2024.
Spot gold prices rose to a new record high of 2110.8 dollars per ounce on Monday before giving up some of their gains.
The head of commodity strategies at the company “TD Securities”, Bart Milik, expects that the average price of gold will reach 2100 dollars in the second quarter of 2024, as strong central bank purchases act as the main catalyst in boosting prices.
