The price of gold rose by about 0.4%, returning to the record high reached yesterday. The precious metal continues to be supported by uncertainty around the US presidential election, geopolitical tensions in the Middle East and expectations of further monetary easing by key Central banks.
Today's weakening of the US currency has also had a positive impact on the value of gold. The US Dollar Currency Index (DXY), which tracks the dynamics of the dollar against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona) fell by 0.10% to 103.92.
Since the beginning of 2024, gold, which is considered a safe haven asset, has increased in price by about 32%. Experts said buyers may seem to eye the $2,800 level next, as political uncertainties will persist as the election draws closer.
Meanwhile, asset management company Sprott Asset Management reported that gold
has entered a "new bullish phase" caused by factors such as purchases by central banks, rising U.S. debt and a potential peak in the U.S. dollar.
"The rising U.S. debt-to-GDP ratio has historically led to higher gold prices due to concerns about debt sustainability, currency devaluation and debt monetization," Sprott Asset Management said, adding that according to forecasts by the Congressional Budget Office, government debt will rise from 98% of GDP in 2023 to 181% of GDP in 2053, which will be the highest figure in the country's history.
According to the World Gold Council, net purchases of gold by central banks in the first half of 2024 increased to 483 tons, which is 5% higher than the previous record set in the first half of 2023.
In general, more and more analysts predict that the price of gold will continue to rise to $3,000, and some expect the value of the precious metal to exceed $2,800 over the next three months.