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Gold
prices
notched
a
new
record
on
Monday
for
a
second
day
in
a
row
—
with
spot
prices
touching
$2,100
as
the
global
rush
for
bullion
appears
set
to
continue.
Gold
prices
are
on
course
to
hit
fresh
highs
next
year
and
could
remain
above
$2,000
levels,
analysts
said,
citing
geopolitical
uncertainty,
a
likely
weaker
U.S.
dollar
and
possible
interest
rate
cuts.
Prices
of
the
yellow
metal
have
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. 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.
Similarly,
another
analyst
is
bullish
on
bullion’s
outlook.
“There
is
simply
less
leverage
this
time
around
vs
2011
in
gold
…
taking
prices
through
$2,100
and
putting
$2,200/oz
in
view,”
said
Nicky
Shiels,
head
of
metals
strategy
at
precious
metals
firm MKS
PAMP.
All
that
glitters
is
gold
Spot
gold
prices
rose
to
a
new
record
high
of
$2,110.8
per
ounce
Monday
before
giving
up
some
gains.
It
is
currently
trading
at
$2,084.59.
On
Friday,
gold
touched
$2,075.09
to
surpass
a
precious
intraday
record
high
of
$2,072.5
on
Aug.
7,
2020,
according
to
LSEG
data.
Bart
Melek,
head
of
commodity
strategies
at
TD
Securities,
expects
gold
prices
to
average
$2,100
in
the
second
quarter
of
2024,
with
strong
central
bank
purchases
acting
as
a
key
catalyst
in
boosting
prices.
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.
“This
means
potentially
higher
demand
from
the
official
sector
in
the
years
to
come,”
Melek
said.
A
possible
policy
pivot
by
the
Fed
in
2024
could
also
be
on
the
cards,
he
added.
Lower
interest
rates
tend
to
weaken
the
dollar
and
a
softer
dollar
makes
gold
cheaper
for
international
buyers
thus
driving
up
demand.
Gold
prices
in
the
past
six
months
On
Friday,
while
Fed
Chairman
Jerome
Powell pushed
back
on
expectations
for
aggressive
interest
rate
cuts
ahead,
his
remarks
indicated
the
Fed
may
at
least
be
done
hiking
for
now.
“We
believe
the
main
factors
buoying
gold
in
2024
will
be
interest
rate
cuts
by
the
U.S.
Fed,
a
weaker
U.S.
dollar
and
high
levels
of
geopolitical
tension,”
BMI,
a
Fitch
Solutions
research
unit,
said
in
a
recent
note.
