Gold Hits a New Record Before Retreating as Traders Take Profits

Gold
Photo by Jingming Pan on Unsplash

Gold hit a new record early on Wednesday before retreating as traders started to take profits from this week’s rally.

Spot gold reached an all-time high of $2,758.49 per ounce, besting its previous record reached the day before by approximately $1. Other precious metals followed closely, with silver surging to $34.72 and almost breaking the $35 per ounce barrier, which it last achieved in 2012.

Later in the day, gold dropped to $2,746.24 per ounce, while silver slipped to $33.60 per ounce. The retreat was attributed to investors believing that the prices went as far as they could for the time being. Additionally, the strengthening US dollar and rising bond yields likely contributed as well.

Gold is almost 34% up in 2024 with the rally particularly intensifying after the Federal Reserve made an aggressive interest rate cut of 50 basis points in September. Experts predict that the final quarter of the year and early 2025 will come with new highs.

In a note sent to clients, Standard Chartered’s analyst Suki Cooper shared that she sees gold reaching $2,800 per ounce by the end of 2024 and clearing the $2,900 mark in the first three quarters of 2025.

“Gold’s ability to latch on to coattails that take prices higher irrespective of the macro backdrop suggests that the market continues to see positive underlying flows,” Cooper wrote.

Ron B
Ron studied law but realized he’d much rather work in a profession that makes him happy and decided to become a writer. He now writes mostly about sports, business, stocks, and politics.