Skip to content Skip to footer

The most coveted metal is in talks again. Yes, gold prices are reaching new heights. Thanks to the disturbance in the cryptocurrency space and uncertainty over interest rates.

The global economy is once again facing hitherto unwanted difficulties. Whether we talk about global geopolitical conflicts or disruptions in the crypto space, it seems like every direction is pointing toward a recession in 2024. In that case, when every door seems to be closed, financial experts are bowing down to the safest investment on this planet, gold. As a result, gold prices reached new heights, passing the $2000 mark. 

Although this is not the first time, gold prices have moved beyond the $2000 mark. Back in 2020, gold was trading above $2000. However, today it shows a different picture. The sudden rise in gold prices is due to two major reasons:

  • Cryptocurrency Turmoil and,
  • Uncertainty over interest rates

Investors are concerned about the future of cryptocurrency, seeing the major economic challenges that may arise next year. On top of that, the continuous disturbance in the crypto space, such as criminal charges against a well-known crypto figure or money laundering charges against Changpeng Zhao, founder of Binance, is forcing investors to clear their positions and look for a safer, dependable, and stable option.

Collin Plume, CEO of Nobel Gold (a metal investing firm), said, “Gold is often viewed as a safe heaven." He also added, "There's some gloom in the market and crypto industry today. Like always, investors run to that one asset that they can count on, gold.” 

Along with the cryptocurrency turmoil, the Federal Reserve officially said that they might keep interest rates high to curb inflation. Although investors are confident that the central bank is done with the interest rate hikes, there is still uncertainty in the market. If the Federal Reserve decides to increase interest rates, the market may react negatively, and as a result, red candles could become a reality.

The Federal Reserve has pushed interest rates to a 16-year high of 5.25%. Interest rates were increased seven times last year, and so far, they have already increased three times this year. As of now, there are heavy speculations that the apex bank’s meeting in December could be the fourth interest rate hike.

Therefore, investors are shifting their focus to a safer and more dependable option. The huge $2000 mark has been crossed by gold prices due to this search for dependability. Durability and timeless worth are two words taken together with gold, making it a secure place for investment in unpredictable conditions. The spike in gold prices highlights the concern within the financial market and reaffirms its timeless standing.

Investors are confident that another interest rate hike will make gold more appealing, and this could push gold prices beyond the $2000 mark. ANZ Research, a leading investment firm, predicted gold prices would trade around $2100 by the end of 2023 and could reach $2200 by September 2024. Thus, we could see investors pulling investments from the market for gold.

Focus on Quality

Sed ut perspiciatis unde omnis iste natus error voluptatem accusantium laudantium, totam aperiam, eaque ipsa quae ab illo inventore veritatis et quasi architecto beatae vitae incidunt dicta sunt explicabo. Dolorem laudantium, totam rem aperiam, eaque ipsa quae inventore veritatis architecto beatae vitae dicta explicabo. Nemo enim ipsam voluptatem quia voluptas sit aspernatur aut odit aut fugit., sed magni ipsum dolores eos qui ratione quia dolor amet, voluptatem seq nesciunt.

Neque porro quisquam est, qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit, sed quia non numquam eius modi tempora enim ad ea incidunt ut labore et dolore magnam aliquam quaerat voluptatem.

0
Perfect Posts
0
Social Shares
0
Super Authors
0
Daily Visitors

Our Team

Optional Subtitle