Gold Hits Record Highs: Is It Too Late To Invest?
Investing.com — The recent surge in the price of gold has captured the attention of investors. As gold closed at record-breaking highs, many are wondering whether it's still a prudent time to invest in the precious metal.
The spot gold price closed Monday’s session at $2,114 per ounce after touching a high of $2,119. However, that rally has continued so far on Tuesday, with the spot price of the yellow metal currently at $2,127 per ounce, not far off its record high set in December last year.
With investors continuing to bet on the Federal Reserve cutting rates in June, the rally could see gold make a new all-time high soon.
When it comes to where the price of gold could head next, HSBC analysts said in a note this week that the gold rally resumed “despite higher yields.”
While they believe the yellow metal is “likely to reach new record highs,” they also state it “may be overstretched.” Gold has an ”undercurrent of support from geopolitics and financial market uncertainty,” added HSBC. They also believe physical demand is likely to recede.
Elsewhere, Citi analysts said they are medium-term bullion bulls and assign a 25% probability that the yellow metal will average a record $2,300 per ounce in the second half of 2024. ”In a low probability wildcard scenario, nominal gold trading could reach $3,000/oz in the next 12-16m,” they declared.
“As listed gold trading flows have shifted from Comex and ETFs to OTC markets and net long positioning remains soft, there is plenty of scope for a medium-term rally after prices consolidate,” added the bank, “Clearly, if the recent topside move sustains for some time, there will be bullish risk to our base case record gold price outlook for cal’24.”
Analysts at GoldPriceForecast are
Read more on investing.com
