Gold prices hit new record highs on Tuesday, driven by strong demand from central banks and exchange-traded funds (ETFs), as investors continue to flock to the precious metal as a safe haven amid global uncertainty, Yahoo Finance reported.
Spot gold rose to more than $2,525 an ounce, while December futures rose to more than $2,560 an ounce, making gold one of the best performing metals in 2024.
Central bank buying was a major factor behind the rise, Reuters reported, with gold purchases hitting record highs in the first quarter of the year.
Gold prices are expected to reach $2,600 per ounce by the end of 2024, supported by strong demand from central banks and increased activity from exchange-traded funds, Solita Marcelli, chief investment officer for the Americas at UBS Global Wealth Management, told Yahoo!.
Gold futures have risen more than 23% since the start of the year, making it one of the strongest performing assets in a year plagued by geopolitical tensions that have sent investors scrambling for safe havens.
According to a report issued by the World Gold Council, gold-backed exchange-traded funds around the world saw positive inflows for three consecutive months, with activity in North America outperforming Europe and Asia in July.
Looking ahead, the next major event for the gold market is expected to be Federal Reserve Chairman Jerome Powell’s speech at the Jackson Hole Economic Symposium on Friday, where investors will be watching for signals that could confirm expectations of a September interest rate cut.
