Gold price glitters at record high – here’s why

[MongiIG]

Gold continues to push above the $2000 per ounce level, reaching $2,147 on Monday. The surge has been thanks to the downtrend in the US dollar and geopolitical uncertainty.

 Angela Barnes | Financial presenter/producer, London | Publication date: Monday 04 December 2023 11:12

With investors turning to the widely considered safe-haven asset. Gold is also being fuelled by expectations that the US Federal Reserve will not raise interest rates further and the markets have priced in a potential interest rate cut as early as March. Meanwhile silver is following a similar trajectory, also continuing to climb higher, back at a level also not seen since May this year, above $2000 again.

 

The price of gold

The price of gold has gone beyond the $2,000 mark, reaching an impressive $2,147 per ounce. Currently, it hovers at around $2,075, showing a small increase of 0.16% for the day. This is the first time since May that gold has reached this level. The rise in gold prices can be attributed to a couple of factors: the weakening of the US dollar and geopolitical uncertainty. These factors have made investors turn to gold as a safe-haven asset. Moreover, there are expectations that the Federal Reserve will not raise interest rates any further, and there is even the possibility of an interest rate cut as early as March. These expectations have further fueled the increase in gold prices.

The US dollar

Similarly, silver has been following a similar price trend as gold and has reached levels not seen since May. However, it has not yet beat its previous record of $2,613 per ounce. At the moment, silver is down 0.75%. Overall, both gold and silver are experiencing a rise in their prices. Gold has managed to exceed the $2,000 mark and reach new heights. This surge is due to various reasons, including the weakened USD, uncertainties in geopolitical situations, and expectations of interest rate cuts. Although silver has not surpassed its previous record, it is also on the rise.

The Federal Reserve

To put it in simpler terms, the price of gold has broken a significant milestone, surpassing $2,000 for the first time in several months. This surge is driven by factors like the weakening US dollar and general uncertainty in world affairs. Investors find solace in gold during times of trouble, making it a popular choice. Additionally, expectations of the Federal Reserve reducing interest rates further have also contributed to the rise in gold prices. Similarly, silver is following a similar trajectory and has reached impressive levels, although it has not yet beaten its previous record. Both gold and silver are undergoing a price increase, making them hot commodities in the market.

 

 

 

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