Gold prices have surged to a new record high, reaching $2,509.65 per ounce on Friday, August 18, 2024. This rally has been primarily driven by growing expectations of potential interest rate cuts by the US Federal Reserve and increasing geopolitical tensions in the Middle East and Ukraine.As of August 19, 2024, gold prices have slightly retreated but remain near the $2,500 per ounce mark, with spot gold trading at $2,502.78. This minor pullback is attributed to profit-taking by traders after the recent surge.Market participants are now focusing on the upcoming Jackson Hole Economic Policy Symposium, scheduled for August 22-24 in Wyoming, USA. Investors are particularly eager to hear Federal Reserve Chairman Jerome Powell’s speech, expected on Friday, which could provide crucial insights into the US monetary policy direction.Analysts’ opinions on future gold prices vary, with some predicting further increases. Carsten Fritsch, chief commodities analyst at Commerz Research, expects gold to rise to $2,600 by mid-next year. More optimistic forecasts from Patrick Yeap, chief development officer at the New York Mercantile Exchange, suggest gold could reach $3,000 in the near future if current economic uncertainties persist and central banks continue their gold-buying spree.The market currently estimates a 75.5% chance of a 25-basis-point interest rate cut by the Federal Reserve at its September meeting. This expectation of a low-interest-rate environment is likely to boost the attractiveness of gold, which does not generate returns.As the week progresses, investors will be closely watching the minutes of the Federal Reserve’s July monetary policy meeting and Jerome Powell’s speech at Jackson Hole for further clues on the direction of US monetary policy and its potential impact on gold prices.
Key points
- Gold prices reached a new record high of $2,509.
- The upcoming Jackson Hole Economic Policy Symposium, particularly Jerome Powell’s speech, is expected to significantly impact gold prices.
- Analysts predict gold prices could potentially reach $3,000 per ounce in the near future if current economic and geopolitical conditions persist.
65 per ounce on August 18, 2024.
Contradictions👾While some sources report a slight decrease in gold prices on August 19, others indicate that prices are still rising or stable near the record high.
