Gold has
reached its all-time high, surpassing $2,100 per ounce for the first time in
history, a milestone achieved this Monday morning. While there was a slight
adjustment afterward, the occurrence is surely historic. Many experts are
optimistic about gold’s future growth, and here’s why.
To grasp
the significance of this moment for XAUUSD,
consider the last five days’ movements, as it might not be as noticeable on
other charts due to their scales.
Examining
the all-history (okay, from 1970 to the present) allows us to appreciate the
importance of the event. Even without the latest surge, gold remains as
valuable as ever. The other critical function of this chart is to remind us one
more time that gold has exhibited stable growth throughout its entire history.
By
replacing US dollars with percentages and focusing on a specific timeframe,
such as the 21st century, we observe a remarkable 618% growth in gold during
this period.
The
surge occurred following Jerome Powell’s speech, which further
convinced investors that there was no reason to anticipate the next interest
rate hike. Moreover, actions by Federal Reserve officials reinforce the belief
that the first key rate decrease will happen sooner than initially estimated.
Initially
discussed for 2024, then the first half of the year, and eventually May,
experts increasingly predict that the change in monetary policy might occur as
early as March. Such discussions and expectations exert pressure on the USD,
supporting other major currencies. Given that gold is a primary defensive
asset, particularly in challenging times, its appeal is understandable
considering our current global challenges.
Many
central banks also consider gold a great acquisition option in the following
year. The plan to replenish gold reserves in 2024, with substantial volumes
involved, has the potential to boost XAUUSD.
Three
crucial factors demand attention: the interest rate decrease, the decline of the USD, and potential central
bank purchases. These elements collectively could sustain gold prices above
$2,000 in 2024, possibly even nearing $2,100. Considering the recent
adjustment, this presents an appealing trading opportunity. Moreover, numerous
experts anticipate continued gold growth in the upcoming years, with
projections reaching $2,250 or $2,300 within a few years.