Historic Moment! Gold Price Hits Record Highs, Poised To Run To $2,500 This Year?

At the beginning of the second quarter, the spot price of gold stood on the important mark of $ 2,250 / ounce, rose to a record high level, the continuation of the Federal Reserve interest rate cut expectations and global geopolitical tensions since the end of 2023 driven by the full range of gold prices surged. Monday morning Asian trading time period, spot gold prices once rose more than 1% to $2,259.69 per ounce, maintaining the recent several trading days since the gold price repeatedly record high trend. Gold as a traditional sense of safe-haven assets, usually in the period of falling global interest rates and geopolitical turmoil, the strongest performance, so in the view of some analysts, gold is ushering in a "golden uptrend point". Many global markets were closed on Friday, but a heavy data released on Friday suggests that the Federal Reserve's interest rate cuts this year is getting closer. The data showed that the Fed's most favoured potential inflation indicator - core PCE data in February cooled. Excluding food and energy, the core PCE price index grew at a year-on-year rate of 2.8 per cent in February, the lowest level since March 2021, unchanged from market expectations and a revised 2.9 per cent from the previous reading. In the eyes of many analysts, this is a further indication that policymakers will likely be comfortable with lower borrowing costs this year, even though the Federal Reserve has maintained this tone of cautious rate cuts. Investors in the financial markets usually start buying gold in large quantities before the Fed cuts rates, as the prices of non-yielding assets such as gold and silver tend to perform well in a low-interest-rate environment. After the core PCE data, the CME "Fed Watch Tool" shows that the probability of a Fed rate cut in June is as high as 66%, suggesting that the majority of interest rate futures traders bet on a rate cut in June, while traders are betting on the number of Fed rate cuts this year for 3 times, a total of 75 basis points - - compared to last December and March, the Fed has not reduced interest rates. -in line with expectations for rate cuts implied by the median FOMC dot plot last December as well as in March. Federal Reserve Chairman Jerome Powell after the PCE data, maintaining his views announced after the interest rate resolution, that is, the path of declining inflation, although rugged, but the overall downtrend, and expects the Federal Reserve at some point this year to begin to cut interest rates or appropriate. Chicago Fed President Goolsbee recently said that three rate cuts this year is consistent with the Fed's baseline expectations. For the future trend of inflation, Goolsbee is still relatively optimistic, he pointed out that since the second half of last year there has been a rapid "inflation" process, although the data in January and February this year, there are some bumps, but the overall may not have changed. Gold is one of the world's major commodities that has performed better so far in 2024, with the spot price of gold up more than 8 per cent in the first quarter. In addition to the core logic that major global central banks such as the Federal Reserve are likely to loosen monetary policy soon, investors who follow gold as a precious metal typically want to hold it during times of economic and political uncertainty; the upcoming polarised US presidential election and the ongoing geopolitical conflicts in Ukraine and the Gaza Strip clearly fit the bill. What's more, strong physical buying power from major Asian central banks and investors has also been a key pillar of support for gold prices. Gold assets have long been seen as a safe haven in times of economic hardship, especially when there are concerns about the safety of one's own cash. The near-universal acceptance of gold as an asset has made it the equivalent of foreign exchange when governments are restricted in their use of other currencies. Russia is now facing another round of fully escalated sanctions from the West, coupled with the pressures that have been brought on since the West imposed full sanctions in 2022. The ongoing threat to the liquidity of the country's currency is so great that demand for this precious metal from the Russian central bank, as well as from some Russian households, has been increasing dramatically since the Russia-Ukraine conflict. Wall Street banks are unanimously long gold Gold's positive outlook can be said to have been recognised by most of the major Wall Street banks. Among them, JP Morgan said in a research report last month, gold is the bank in the global commodities market's preferred investment target, JP Morgan expects the spot price of gold this year may reach 2,500 U.S. dollars per ounce. Goldman Sachs, known as the "flag bearer of commodities", shouted that the price of gold and other metals will continue to climb this year. 28 March, Goldman Sachs analysts Nicholas Snowdon and Lavinia Forcellese pointed out in a report that by the end of the year, copper will rise to $10,000 per tonne, aluminium will rise to $2,600 per tonne, and aluminium will rise to $2,600 per tonne, while gold is the preferred investment target of the bank. to $2,600 per tonne, while also expecting gold to appreciate to $2,300 per ounce. Goldman Sachs pointed out that in Europe and the United States central bank monetary policy shift, geopolitical factors and other multiple factors, gold is expected to continue the end of 2023 as well as the early 2024 rising momentum. According to a research report from Citigroup, another major Wall Street bank, gold prices could soar to $3,000 an ounce in the next 12 to 18 months, all depending on three possible catalysts. Aakash Doshi, head of North American commodities research from Citigroup, said gold prices will probably rise by about 50 per cent if major central banks around the world significantly increase their gold purchases, if there is global stagflation or if there is a deep global recession. "My target is for the gold price to reach $2,500 by the end of 2024, and a lot of that has to do with the fact that recessionary forces could start to take hold later this year and intensify in 2024." David Neuhauser, founder of Livermore Partners, said. "2024 will be the year I see the price of gold breaking out and reaching new highs