On Friday, gold futures prices have reached an all-time high of $2095 an ounce during the U.S. trading session, and closed above $2070 an ounce.
The price increase is mainly attributed to the dovish stance of the U.S. Federal Reserve as well as safe haven buying amid concerns about the situation in the Middle East and elsewhere. The Fed's rate hikes may have concluded which is proving to be advantageous for the non-yielding gold, while its status as a safe haven asset means that the metal retains its value during geopolitical and economic turmoil.
Additionally, the uncertain strength of China’s economy and a gloomy global economic forecast are supporting gold’s status as a safe haven.
“Gold has had a Santa Claus rally and I expect that to continue until the end of this year. As we see inflation attenuate, it speeds up (the) timeline for policymakers to lower rates, which is good for gold,” said Everett Millman, chief market analyst at Gainesville Coins, in an interview with Reuters.
“Gold will pull back if there is a hawkish push back. But, it is certainly within the realm of possibility that gold re-tests record highs,” he added.
Theodor Lisovoy, Editor in Chief of the European bureau, Rough&Polished
