Gold prices have been on a tear in recent months, with the precious metal reaching new all-time highs amid economic and geopolitical uncertainty. The price of gold has surged by over 10% this year, with investors piling into safe-haven assets as global risks continue to mount. In this blog post, we’ll take a closer look at the factors driving the rally in gold prices and what it could mean for investors.
Economic Factors and Geopolitical Risk Fuel Gold Rally
The federal reserve has increased interest rates to the highest levels in many years during 2023. The recent increase in gold price is related to geopolitical uncertainty created due to the Israeli Middle East War, anticipation that the Federal Reserve Bank has reached the top of the current rate hiking cycle, and a recent selloff in value of the USD relative to a basket of G7 currencies.
Within the investment community expectations of the first interest rate cut by the Federal Reserve Bank have been moved up to earlier in the year to March 2024 from June 2024 with 80% probability by various investment bank research departments. This is due to recent inflation measures seen to be improving further confirm the interest rate hikes have been effective in cooling inflation.
How Can I Take Advantage of Record Gold Prices?
Gold pricing surged and hit a record $2,100 per ounce on Sunday, December 3rd as a global rush for bullion continues and traders expect interest rate cuts. If you’re considering selling gold, this is the time!
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