Spot gold prices rose to a new record high, expected to remain above $2,000 levels next year, as investors are looking for safe-haven assets.
Gold prices surged to a new record high of $2,110.8 per ounce on Monday, Dec. 4. This price peak followed two months of consecutive growth, largely attributed to a new wave of geopolitical uncertainty triggered by the Israel-Palestinian war.
Analysts expect the market price of the precious metal to remain above $2,000 levels next year, possibly reaching $2,200, considering unabated geopolitical uncertainty, a likely weaker U.S. dollar and possible interest rate cuts.
Typically, gold is viewed as a safe-haven asset, with demand rising amid global crises. In addition, investors anticipate retreat in both the USD rate and federal interest rates, which is also a favourable condition for the gold price increase. Lower interest rates may weaken the dollar which, in turn, makes gold cheaper for international buyers, inspiring more robust demand.
Not only individuals but also institutions and governments prefer investing in gold to boost their financial stability. A recent survey by the World Gold Council showed that 24% of all central banks intend to increase their gold reserves within the next year, growing increasingly pessimistic about the U.S. dollar as a reserve asset.
At the moment of writing, gold price has decreased a little, trading at around $2,070. At the same time, it is still trading at unprecedented highs, with previous all-time-high record set on August 6, 2020 being $2,069.40.
As demand for gold grows, you may consider Top 10 Best Places to Buy Gold and Silver Online to make a reliable investment in a precious metal asset.
