Gold could be set to hit new highs in 2024
In December, City PM opined that gold would likely continue to build on a strong 2023 as wars showed no signs of abating and major economies continued to wrestle with inflationary pressures.
And after just over three months, the bet has come good with the yellow metal running an impressive price climb through February and into March.
Last week, gold reached rose to $2,141.79 (£1,683.98) an ounce, beating its previous record of $2,135.39 (£1,679.59) set on December 4 last year.
This was routinely beaten again last Friday with a $2,195 (£1,715) spot price being recorded in New York.
But a record-breaking nine-day run of unprecedented gains in the spot price of gold bullion was dashed on Tuesday as underlying US inflation for February beat forecasts.
Despite the slip, the fact is that investors are likely to remain bullish on the bullion.
Given the incredible strength of sentiment on the haven asset, it’s not proving itself as a ‘sell’ and likely will continue to hold that pattern for the foreseeable future as there are so many reasons to believe the prices will stay elevated.
Central banks will likely continue to cut, the global conflicts are unlikely to stop and emerging markets will continue to stockpile gold to hedge against these risks.
However despite the near 20 per cent gain in spot bullion since January 1st, funds that track the main producers have hardly ticked upwards, and even fallen.
Miners, too, have failed to see the benefits filter through in share price gains to date but could be in line to benefit should the rally continue towards the inflation-adjusted record of above $3,000 (£2,344) per ounce.