Mikkel Rosenvold
31 weeks ago

Gold breaks record level - more to come?

Investors look to inflation-proofing and gold reaches news highs. Is the price surge over or could there still be profits to be made?
A collection of gold bars.
Pixfiction / Shutterstock.com

Gold is currently closing off the week at all-time record levels after some incredible weeks. On friday, Gold reached $2,167 per ounce - even higher than the early December peak of $2,143 per ounce and the $2,020 peak right after the Russian Invasion of Ukraine.

Major factors driving up the price of gold is likely recent remarks by Federal Reserve chief Jerome Powell, who recently confirmed his plans to start cutting short-term interest rates during 2024 even if markets feared a "higher-for-longer" scenario.

"The new gold rush is that we're in no gold rush," BuillonVault cited former HSBC fund manager Charlie Morris, hoping for a slow and steady bull market.

The new high in gold prices was reciprocated in Asian commodity markets, with the SHanghai gold index jumping to ¥499 per gram - a 19% increase from last year.

Another major driver of the gold surge is India, who saw gold imports rise by 86% over the past year, according to Times of India.

Meanwhile, Bitcoin and other cryptocurrencies are emerging as potential rivals to gold as inflation-proof investment options. Bitcoin has been in an incredible surge during 2024 to reach new heights above $69,000 per bitcoin.

Clearly, investors and are looking for save havens in times of increased inflation and simultaneously, many central banks are turning to gold reserves as the integrity of their overseas reserves have come into question after the seizure of Russian assets as a result of the Ukraine War.

Disclaimer

The information provided by this Site is for general informational purposes only. All information on the Site is provided in good faith, however we make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability or completeness of any information on the Site.

More News

16 weeks ago Analysis: New Debate Rules Favor Biden New rules announced for the June 27th debate between Joe Biden and Donald Trump serves the President well.
16 weeks ago StanChart Becomes Among the First Global Banks to Launch Spot Crypto Trading StanChart breaks new ground by launching spot trading for Bitcoin and Ether, leading the charge among global banks in the cryptocurrency space.
16 weeks ago Crypto, Currently: June 21, 2024 - Market Bears Down on Major Cryptos Daily update on the five cryptocurrencies, we consider the most interesting right now.
16 weeks ago FX Daily: June 21, 2024 – Forex Market Update Daily update from the foreign exchange markets.
16 weeks ago Amazon Plans To Make Largest Reduction of Plastic Packaging in North America To Date Amazon's response to mounting criticism over its plastic waste with a new reduction plan.
16 weeks ago Ex-OpenAI Chief Scientist Ilya Sutskever Launches New Company Amid Criticism of ChatGPT Parent's Board Appointments Ilya Sutskever, former chief scientist at OpenAI, has co-founded a new company, Safe Superintelligence Inc., amidst ongoing scrutiny of OpenAI’s recent board appointments.
16 weeks ago FX Daily: June 20, 2024 - Mixed Movements in Global Currency Markets Daily update from the foreign exchange markets.