Gold prices have set a new all-time high, reaching $2,140.7 per troy ounce. The previous record was set in August 2020 at $2089.2 per ounce, Reuters reports.
As of Monday, December 4, the spot price of gold was $2084.3 per ounce, which is 0.7% higher than at the close of the previous session.
Experts believe that the precious metal will continue to rise in price next year, emphasizing geopolitical tensions, as well as the possibility of a reduction in the base interest rate by the Federal Reserve, which will contribute to the weakening of the dollar.
According to Bas Kooijman, head of DHF Capital, the precious metals market is reacting to news of escalating tensions in the Middle East. The end of Israel's ceasefire with Hamas "is likely to encourage investors to avoid risks," the expert believes.
Gold futures for December delivery rose in price during trading on Monday, December 4, by 0.8% to $2086.5 per ounce.
Earlier it was reported that in the first quarter of 2023, gold rose by almost 8.5%, the quarterly dynamics of gold prices became a record since the second quarter of 2020 amid the US banking crisis and the expected withdrawal of the US Federal Reserve from the policy of raising rates.
In addition, demand for gold has also increased sharply from central banks, which are buying gold to diversify their reserves. Mark Newton, managing director and technical analysis expert at Fundstrat, a research company, predicted that the price of the precious metal could update its record and rise to $2,500 per ounce.