Gold prices reached a historical record, exceeding $2,100 per ounce at auction on December 4. The metal opened at $2,135, surpassing the previous high set in 2020 during the pandemic.
According to analysts, interest in gold has increased amid the war between Israel and Hamas. Another factor is the slowdown in inflation, which has fueled speculation that the Federal Reserve may lower rates. That sentiment was cemented after Fed Chairman Jerome Powell said on Dec. 1 that rates were “in restrictive territory,” which “revealed hopes that the Fed could begin cutting rates soon.” Bloomberg said traders see a 60% chance of such a move as early as March 2024.
Analysts believe that a further increase in metal prices will not be significant and do not rule out a price drop to $1,900 by the end of the year.
