The price of gold reached a new all-time high.
The precious metal was trading at $2,700 a troy ounce at the close, but expectations are that the escalating conflict in the Middle East will push prices even higher when markets open on Monday.
The all-time high was reached on expectations that the US Federal Reserve will continue to cut interest rates.
In addition, central banks took an active interest, fearing an escalation in the Middle East.
Gold is up about 25% since the start of 2024.
But how long can the uptrend last?
Adjusted for inflation, gold at current prices has not yet reached the peak it was in the 1970s.
That 1970s level is about $3,000 an ounce.
On the other hand, there is a risk factor that could bring the gold rally to a halt – it is the US presidential election, brokers believe.
American investment houses, however, massively expect further growth in the price of gold: according to their forecasts, quotations may reach 3 thousand dollars by the end of the year. In 2025, they think we will see quotes of $3,300.
Only in the long term, if the geopolitical risks normalize, gold can become cheaper.
Silver hit a record since December 2012 – almost 33 dollars per ounce.
The metal has gained 34% since the start of 2024, showing the best dynamics among commodities.
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