Gold Price Hits Record High on August 16: Boosting Investment Amid Economic Situation and Interest Rate Policy
On August 16, gold prices hit a record high of $2,509.41 per ounce, according to AFP. The increase was fueled by optimism in global stock markets, thanks to positive data on the health of the US economy and predictions of a possible interest rate cut by the US Federal Reserve (Fed).
August 16 marked the highest gold price ever, surpassing the previous record of $2,468 an ounce set on July 16. Investors are rapidly shifting their investments into gold, partly due to rising geopolitical risks and expectations of the Fed’s monetary policy in September.
“A sharp fall in bond yields amid expectations of a Fed rate cut” has pushed gold prices higher, according to City Index and FOREX.com analyst Fawad Razaqzada.
Gold Price Forecast to Rise in 2024: ING Believes Peak Will Be in Q4
Strategist Ewa Manthey of Dutch bank ING has made an optimistic forecast for gold prices in 2024, expecting that gold prices could continue to rise and peak in Q4. According to ING’s analysis, gold prices hit a record high in July thanks to strong demand from central banks and Asian consumers. After a period of consolidation, gold prices are expected to maintain their upward momentum.
According to ING, geopolitical factors will continue to be the main drivers of gold prices. The war in Ukraine, tensions in the Middle East and US-China relations all contribute to increased demand for safe-haven assets such as gold, supporting gold prices in the short and medium term.
Central Banks Continue to Buy Gold: New Data from the World Gold Council (WGC)
According to data from the World Gold Council (WGC), central banks continued to increase their gold purchases in June, with a net purchase volume of 12 tonnes. This trend is expected to continue in the coming period, thanks to the stable economic situation and current geopolitical tensions. In addition, the cooling of consumer prices after record highs also supports this trend.
