🔮 Better than the Oracle? Our Fair Value found this +42% bagger 5 months before Buffett bought itRead More

Gold Shatters Expectations With A Record High Of $2,450 Per Ounce Amid Expectations Of Lower Interest Rates

Published 21/05/2024, 14:24
Gold Shatters Expectations With A Record High Of $2,450 Per Ounce Amid Expectations Of Lower Interest Rates

Benzinga - by Zaheer Anwari, Benzinga Contributor.

  • Gold prices have hit a new record of $2,450 per ounce, influenced by anticipations of a U.S. Federal Reserve rate cut.
  • Hedge funds have increased their bullish investments in gold futures.
  • Gold's value has surged 17% since the beginning of the year, with predictions suggesting it might reach up to $3,000.
The price of gold has reached a new record high of $2,450 per ounce, marking a significant milestone in the commodity markets.

This increase is mainly due to the expectation that the US Federal Reserve might lower interest rates by September, making gold more attractive to investors looking to preserve value.

Investor interest in gold has also grown, particularly among hedge funds, which have increased their bullish bets on gold futures.

This high demand highlights gold's status as a preferred safe-haven asset, especially during economic uncertainty and geopolitical conflicts.

Tensions in regions like Russia and the Middle East have further driven investors towards the safety of gold. Additionally, silver prices have also risen significantly, nearing an 11-year high.

Focusing on gold’s recent performance, the precious metal has not only moved beyond the April 12th all-time high of $2,431, but has also maintained a strong upward trend throughout 2024.

Since the start of the year, gold has risen by an impressive 17%, with projections indicating further increases, potentially reaching $2,500 and even aiming for the significant $3,000 level.

The path to these record highs has had its ups and downs. For example, just before its latest surge, gold experienced a 6% dip between April 12th and May 3rd.

Despite occasional dips, market sentiment remains strong. This is evident from the current buying momentum, with a 6% increase in May alone. This rise follows a period of consolidation where gold prices fluctuated between $1,600 and $2,100 from August 2020 to March 2024, before eventually breaking out.

This demonstrates the metal’s resilience and continued investor confidence in its value as both an asset and an investment.

After the closing bell on Monday, May 20, the commodity closed at $2425, trading up by 0.44%.

This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.