Gold Prices Hit New High over $2,100 with Potential of New Record Breaking in 2024

Gold prices rose two days in a row, making a new record high for spot prices of $2,110.8 per ounce on Monday.

Analysts indicated that gold prices are predicted to hit a new record next year and hover above $2000 or even beyond by the end of 2024.

The Israel-Palestinian conflict and expectation of interest rate cuts in the US, which cause uncertainty among the global economy, are the key factors that raise the demand for gold.

24% of all central banks aim to increase their gold reserves in the next 12 months, since gold is perceived to be safer to hold as a reserve asset, according to a survey by the World Gold Council.

Bart Melek, head of commodity strategies at TD Securities, expects gold prices to be at an average of $2,100 in the second quarter of 2024. The US dollar could become weaker as the possible Fed policy in 2024 could lower the interest rates, pushing the demand for international gold buyers.

On November 29, Fed Governor Christopher Waller mentioned the envision of easing policy following the possibility of calming inflation data, which convinced the analysts to predict an increase in gold prices.