Gold’s value soared to a new high, driven by market anticipation of potential early interest rate reductions next year. The price of gold briefly surpassed $2,111 per ounce during trading in Asia before settling at $2,086.
This surge occurred without a clear trigger, leading some to believe it was a result of traders capitalizing on the momentum after gold exceeded $2,107 the previous week.
Additionally, global central banks have been actively purchasing gold, with a record acquisition of 800 metric tons up to September of this year. Many analysts now predict the gold price could reach as high as $2,240 or even $2,400.
The expectation of significant interest rate cuts next year is also fueling gold’s rise, as it’s often viewed as a hedge against inflation. Currently, there’s a 59% likelihood of a U.S. interest rate cut by March, a sharp increase from just 20% a week earlier.
