Gold poised for historic annual gain in over a decade
Gold poised for historic annual gain in over a decade
Gold Poised For Historic Annual Gain In Over A Decade
Gold extended its rally today (Thursday), adding over 0.8% gain to its recent price surge. This follows yesterday’s gains which brings the precious metal back to its all-time high of $2,685.20, a level last reached on September 26. As bullish momentum builds, gold is poised to potentially set new record highs in the coming sessions.
Market experts are now projecting Gold's long-term forecast to unprecedented levels over the next 12 months. According to a survey of delegates at the London Bullion Market Association’s (LBMA) annual gathering in Miami, the precious metal is expected to rise to $2,917.40 per troy ounce by late October next year, reflecting a 10% increase from its current price of $2,685.
So far in 2024, gold has outperformed most commodities, gaining 29% year-to-date, and is set to make its largest annual increase in 14 years. It hit a record high of $2,685.23 per ounce on September 26, driven by the combination of US Federal Reserve interest rate cuts and escalating geopolitical tensions.
Gold as a safe-haven asset
Gold continues to play its role as a safe-haven asset for investors and a reserve asset by central banks. Central banks' aggressive buying of Gold to strengthen their reserves has made Gold the second most reserved held asset surpassing the Euro. This trend, coupled with rising investor demand, has propelled the metal to successive record highs throughout the year.
Uncertainties regarding the upcoming US presidential election are also adding fuel to gold’s rally. Gold’s appeal as a portfolio hedge is growing stronger and investors will be repositioning their portfolios in anticipation of market volatility. UBS Group AG analysts, led by global wealth management CIO Mark Haefele, highlighted that “uncertainty and volatility are likely to rise until the next US administration is settled.” They added that gold, alongside oil, serves as an effective hedge in these highly volatile market environments.
