5-3-2024 (NEW YORK) The gold market in New York saw prices skyrocket to an all-time high of $2,126.30 per ounce at the close of Tuesday’s trading. Simultaneously, London’s precious metals scene experienced its zenith during Monday’s morning auction, with the gold price benchmark reaching an unprecedented $2,083.15 per troy ounce. This achievement surpassed the previous record set on December 28, as reported by the London Bullion Market Association (LBMA).
As a prominent authority in the global gold market, the LBMA holds a crucial role in certifying gold refiners, granting them access to London’s influential bullion market—the largest of its kind worldwide. The LBMA Gold Price serves as the international benchmark for unallocated gold delivered in London.
Ruth Crowell, Chief Executive of LBMA, commented on the record-setting price, stating, “Gold once again proves its worth as a diversifying asset with today’s record-setting price.” Market participants are eagerly anticipating the results from LBMA’s afternoon price auction, as they seek further insights into the gold market’s trajectory.
The surge in gold prices follows lacklustre U.S. economic data, intensifying expectations for the Federal Reserve to implement its inaugural interest rate cut for the year, possibly as early as June. In the spot market, gold prices hovered near a two-month high on Monday, reaching a peak of $2,135.40 briefly in early December.
The precious metal’s performance has surpassed initial forecasts for the year. A Reuters poll conducted in January had analysts predicting an average gold price of $2,053.50 per ounce in 2024. Similarly, a forecast survey by the LBMA projected an average of $2,059 for the same period.
Analysts are closely monitoring the rapid price movement, with Heraeus’s team stating, “Gold has entered overbought territory on this rally, suggesting that a corrective dip could be imminent. Should the price revert to its previous ascending trajectory, we would anticipate a stabilization around the $2,050 per ounce mark.”
In times of economic uncertainty, investors traditionally turn to gold as a safe haven. The current global economic recovery challenges and geopolitical tensions have only heightened gold’s allure, attracting capital from a diverse range of investors.
