The world spot gold price on the afternoon of September 23 stood at 2,630.6 USD/ounce. The gold futures price stood at 2,652.8 USD/ounce.
World gold prices hit a record high on September 23, supported by a weaker greenback.
According to ccn.com, many analysts predict that gold prices will continue to rise, possibly reaching $3,000 an ounce. Antonio Ernesto Di Giacomo, senior market analyst at XS trading platform, predicts that gold prices could exceed $3,000 an ounce by 2025 and reach $2,700 an ounce by the end of 2024.
“Traditionally, lower interest rates are good for gold, as the metal does not generate interest and is therefore more competitive against other yield-earning assets such as bonds,” Antonio Ernesto Di Giacomo told CCN. “In a low-interest rate environment, investors tend to seek assets that preserve value against the risk of currency devaluation, further boosting demand for gold.”
CCN and FXStreet point out several reasons for the rise in gold prices.
First, the Federal Reserve (Fed) has begun a monetary easing cycle and is expected to cut interest rates further this year. Monetary easing policies are also being implemented continuously by central banks around the world.
Second, rising geopolitical tensions in the Middle East could lead investors to pour money into safe-haven assets like gold. Hezbollah and Israel clashed violently on September 22, with Hezbollah in Lebanon launching rockets deep into northern Israel after facing some of the heaviest bombing in nearly a year of conflict, according to CNN.
Additionally, the upcoming 2024 US presidential election – which is expected to be fiercely contested – brings uncertainty and reinforces gold's appeal as a safe-haven asset.
Traders will keep an eye on the US Purchasing Managers' Index (PMI) data, due later on September 23 local time.
The data released could have a strong impact on the US dollar and put pressure on gold prices in USD terms.
