21.10.2024, 14:09
The price of gold has updated the record, rising to $2,748 per ounce
Source: OREANDA-NEWS
OREANDA-NEWS Gold continues to rise in price, the price of the precious metal updated the record at auction on Monday.
The price of December gold futures as of 11:50 Moscow time amounted to $2,746.9 per troy ounce, which is 0.6% higher than at the close of the previous session. Earlier in the course of trading, the price of the precious metal rose to $2,748 per ounce.
Gold is getting more expensive amid an increase in demand for the assets of the "safe haven". Traders are closely monitoring events in the Middle East, fearing a growing conflict in the region.
Uncertainty about the results of the US presidential election is also supporting demand for precious metals.
A Republican victory is likely to provide further support for gold, given the potential for increasing state budget problems in this case, as well as inflationary risks, geopolitical and trade tensions, according to JPMorgan analysts, whose opinion is cited by The Wall Street Journal.
Another factor contributing to the increase in precious metal prices is the easing of monetary policy by central banks around the world.
On Monday, the People's Bank of China (NBK, the country's central bank) lowered the base interest rate on loans (LPR) for a period of one year by 25 basis points (bp) to 3.1% per annum. The rate on five-year loans has also been reduced by 25 bps, to 3.6%. Both rates are at record lows.
Traders are waiting for the Federal Reserve to cut the base rate in November, but now only by 25 bps, and not by 50 bps, as it was before.
Commonwealth Bank of Australia analyst Vivek Dhar believes that the price of gold will rise to $3,000 per ounce in the fourth quarter of 2025. The potential weakening of the US dollar as a result of the easing of monetary policy by the Federal Reserve will be a key factor in supporting gold prices, the expert believes.
The price of December gold futures as of 11:50 Moscow time amounted to $2,746.9 per troy ounce, which is 0.6% higher than at the close of the previous session. Earlier in the course of trading, the price of the precious metal rose to $2,748 per ounce.
Gold is getting more expensive amid an increase in demand for the assets of the "safe haven". Traders are closely monitoring events in the Middle East, fearing a growing conflict in the region.
Uncertainty about the results of the US presidential election is also supporting demand for precious metals.
A Republican victory is likely to provide further support for gold, given the potential for increasing state budget problems in this case, as well as inflationary risks, geopolitical and trade tensions, according to JPMorgan analysts, whose opinion is cited by The Wall Street Journal.
Another factor contributing to the increase in precious metal prices is the easing of monetary policy by central banks around the world.
On Monday, the People's Bank of China (NBK, the country's central bank) lowered the base interest rate on loans (LPR) for a period of one year by 25 basis points (bp) to 3.1% per annum. The rate on five-year loans has also been reduced by 25 bps, to 3.6%. Both rates are at record lows.
Traders are waiting for the Federal Reserve to cut the base rate in November, but now only by 25 bps, and not by 50 bps, as it was before.
Commonwealth Bank of Australia analyst Vivek Dhar believes that the price of gold will rise to $3,000 per ounce in the fourth quarter of 2025. The potential weakening of the US dollar as a result of the easing of monetary policy by the Federal Reserve will be a key factor in supporting gold prices, the expert believes.
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