Gold prices have soared to all-time highs, with experts predicting further increases as central banks globally continue to amass gold in large quantities.
According to CNBC, prices could reach $2,300 per ounce by late 2024, influenced by potential interest rate cuts from the U.S. Federal Reserve. Gold is currently valued at $2,203 per ounce, benefiting from the inverse relationship with interest rates, making it more attractive compared to fixed-income assets like bonds in a low-interest environment.
Central banks have played a pivotal role in driving up gold prices, with significant purchases over the past two years and strong buying intentions for 2024.
The World Gold Council’s Shaokai Fan highlighted the historical levels of gold acquisition by central banks, which have supported prices despite high-interest rates and a strong dollar. China, as the leading consumer and central bank buyer of gold, along with significant purchases by Poland and Singapore, emphasizes the global trend towards gold as a favored investment and safe-haven asset.