Gold prices continue to move higher, with analysts expecting the rally to extend into at least the s

Mondo Finance Updated on 2024-03-07

According to the U.S. Consumer News and Business Channel, March 5, gold prices continued to rise on the 5th after hitting a record in the past two trading days, while analysts expect the strength of gold prices to continue at least until the second half of this year.

The *** contract for April delivery was priced at $2,100 per ounce for the first time on the 4th and at 1:15 p.m. London time**037% to 2134 per ounce2 USD. **Spot** then **07% to $2,129 an ounce, although market watchers note that after adjusting for inflation, **really** is still well below previous peaks.

Citigroup analysts in the United States called themselves "medium-term ** long" in a research report on the 4th, saying that there is a 25% probability that the average price will set a new record of $2,300 per ounce in the second half of the year. Their base gold price projection remains at US$2,150 per ounce and reiterates that there is a "variable" of gold reaching US$3,000 per ounce in the next 12 to 16 months.

Citigroup said it is a "recession hedge" in developed markets and will increasingly benefit from the uncertainty surrounding the U.S. in November.

Analysts at Berenberg Bank in Germany also pointed out on the 4th that Donald Trump's victory in the U.S. ** election would "provide a significant benefit", and further support for this safe-haven asset would come from the turmoil around the war in Ukraine and Gaza.

As a result, they believe that the future will be strong in relation to **, claiming that these recent movements have "lost their relevance", despite the recent gold price near record levels.

"This is largely due to better-than-expected performance of the US economy, as well as the Fed's continued hawkish stance on monetary policy," they said. ”

Higher interest rates are often thought to lead to higher yielding assets becoming more attractive, and the two waves** of gold prices in late 2023 and in recent days have been driven by market expectations of an imminent Fed rate cut. (Compiled by Cao Weiguo).

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