Gold suddenly increased "uphill", setting a new record

World gold price stood at 2,233 USD/ounce, up sharply to 43 USD/ounce compared to the same hour yesterday morning. This is the highest price in the history of world gold, and is also the best month of gold performance over the past 3 years.

Gold prices soared in the context of the world market last night recording good information about US GDP. Specifically, the US's gross domestic product (GDP) in the fourth quarter of 2023 increased by 3.4% over the same period, higher than the previous forecast of 3.2%. First-time applications for unemployment benefits in the US last week were at 210,000 applications, lower than the 212,000 applications forecast previously and last week. PCE price is an index measuring the price change of consumer goods and services exchanged in the US economy in the fourth quarter of 2023, increasing by 1.8% over the same period, lower than the level achieved in the previous quarter. .6%.

New figures show that the US economy is recovering positively. The USD benefits greatly from this information. Normally, when the USD increases, the price of gold will decrease, however, in this case, factors affecting inflation reduction such as increased PCE will soon push the US Federal Reserve (Fed) to reduce interest rates, thereby beneficial for gold.

The average gold price this year will fluctuate around 2,169 USD/ounce. At the same time, they predict the average gold price next year will be about 2,100 USD/ounce. Gold prices are expected to average about $2,000/ounce in 2026 and $1,950/ounce in 2027. In the fourth quarter, BMO forecasts, gold prices will average about $2,250/ounce.

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The influential investment bank has shifted its outlook on commodities to buy as early as 2024, citing cyclical and structural support for demand, and the role of commodities as a hedge against geopolitical risks.

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Looking back at last week's economic data released by the US, the market believes that gold prices may be under downward pressure, with gold speculative positions falling during the week.

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Even though the price of gold is at an all-time high, many market observers are still paying attention to it. While the current economic situation is favorable for stocks, it is even more favorable for gold, Tim Hayes, global investment strategist at Ned Davis Research wrote in a recent report.