Gold Skyrockets: First Time Ever Price Exceeds $2400 per Ounce

The rally is driven by expectations of an interest rate cut by the Federal Reserve

The gold price has set a new record during trading on Friday, surpassing the $2400 per ounce mark for the first time.

Prices for gold futures maturing in June 2024 on the Comex exchange in New York jumped 2.2% in the afternoon of Friday, April 12, rising to $2420.70 per ounce. Since the beginning of the year, the price of the precious metal has risen by more than 14 percent.

According to financial analysts at MarketWatch, “the rally in precious metals prices is driven by expectations of lower interest rates from the Federal Reserve, high geopolitical risks, and active demand from central banks.” According to analysts, if the above factors remain, the rally should continue throughout 2024.

“We expect the release of less important US statistics next week, and gold is unlikely to come under significant pressure,” said Thu Lan Nguyen, head of commodities research at Germany’s Commerzbank.

Meanwhile, Saxo Bank’s Ole Hansen said he expects “technical resistance” at $2450, $2500, and $2645 per ounce, but noted that “if there is a correction, it will be very minor.”