Gold prices have been steadily increasing, reaching a peak of $2,365 an ounce on April 9. This surge in prices represents a 16.5% increase since the beginning of the year and can be attributed to various factors such as political fluctuations, central bank purchases, and expectations of the US Federal Reserve reducing interest rates.
Central banks have been increasingly purchasing gold as a way to diversify their assets and reduce their dependence on the US dollar. Countries like China, Turkey, India, and Russia have led the way in this trend. Geopolitical tensions and uncertainties, particularly in the Middle East, have also contributed to the rise in gold prices.
Analysts believe that the main driving force behind the increase in gold prices is the expectation that the Fed will lower interest rates. This expectation is supported by market forecasts of a 51% chance of a 25 basis points rate cut in June. Lower interest rates make gold more attractive to investors as it does not pay fixed interest and can serve as a safe haven investment during uncertain times.
Experts predict that economic and political fluctuations, as well as ongoing tensions in various regions, will continue to support the upward trend in gold prices. Some analysts even suggest that gold could reach $3,000 an ounce within the next 1-1.5 years due to global uncertainties and increased demand from both central banks and individual investors. Overall, gold’s price looks set to continue its upward trajectory for now.
In summary, international gold prices have been steadily increasing since January due to political fluctuations, central bank purchases, and expectations of lower interest rates from the US Federal Reserve. While there are some concerns about potential geopolitical tensions or global economic instability which may affect future pricing trends; experts predict that demand for gold from central banks and individual investors will continue to push its price higher for now.
