"Gold price seen rising towards record highs as rate rises near end"

" \r\n \r\n \r\n Gold price seen rising towards record highs as rate rises near end \r\n\r\n \r\n \r\n\r\nGold prices are expected to rise towards record highs above $2,000 an ounce this year, albeit with a little turbulence, as the United States slows the pace of rate hikes and eventually stops increasing them, according to industry analysts.\r\n \r\nSpot prices of the precious metal have shot above $1,900 an ounce, surging by about 18% since early November as inflationary pressures recede and markets anticipate less aggressive monetary policy from the US Federal Reserve.\r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\nFast-rising interest rates hammered gold prices last year, kicking them as low as $1,613.60 in September from a high of $2,069.89 in March \u2013 just shy of a record peak in 2020.\r\n\r\nHigher rates lifted returns on bonds, making non-yielding gold less desirable for financial investors, and pushed the dollar to its strongest in 20 years, making dollar-priced gold costlier for many buyers.\r\n \r\n <img class=\"wp-image-1108641\" src=\"https:\/\/www.mining.com\/wp-content\/uploads\/2023\/01\/GOLD-GRAPHIC-2023-DOLLAR-AND-YIELDS.jpg\" sizes=\"(max-width: 961px) 100vw, 961px\" srcset=\"https:\/\/www.mining.com\/wp-content\/uploads\/2023\/01\/GOLD-GRAPHIC-2023-DOLLAR-AND-YIELDS.jpg 961w, https:\/\/www.mining.com\/wp-content\/uploads\/2023\/01\/GOLD-GRAPHIC-2023-DOLLAR-AND-YIELDS-300x225.jpg 300w, https:\/\/www.mining.com\/wp-content\/uploads\/2023\/01\/GOLD-GRAPHIC-2023-DOLLAR-AND-YIELDS-768x577.jpg 768w\" alt=\"\" width=\"961\" height=\"722\" \/> Charting gold prices, the US dollar index and US inflation-adjusted 10-year bond yields \r\n \r\nThe weakening US currency and bond yields \u201cwill become macro tailwinds for the yellow metal, pushing gold above $2,000\/oz in the coming months,\u201d said analysts at Bank of America.\r\n\r\nWith less pressure from the dollar and bonds, investors are likely to buy bullion as a hedge against inflation and economic turbulence, said WisdomTree analyst Nitesh Shah, adding that prices could easily move above $2,100 an ounce by year-end.\r\n\r\nGold is traditionally seen as a safe place to store wealth. \u201cThe risk of central banks overdoing it and pushing their economies into recession is high,\u201d said Shah.\r\n\r\nSpeculators who in November were betting gold prices would fall have amassed a net long position in COMEX futures of 8.3 million ounces of gold, worth $16 billion, helping push up prices.\r\n \r\n <img class=\"wp-image-1108642\" src=\"https:\/\/www.mining.com\/wp-content\/uploads\/2023\/01\/GOLD-GRAPHIC-2023-POSITIONING.jpg\" sizes=\"(max-width: 901px) 100vw, 901px\" srcset=\"https:\/\/www.mining.com\/wp-content\/uploads\/2023\/01\/GOLD-GRAPHIC-2023-POSITIONING.jpg 901w, https:\/\/www.mining.com\/wp-content\/uploads\/2023\/01\/GOLD-GRAPHIC-2023-POSITIONING-300x166.jpg 300w, https:\/\/www.mining.com\/wp-content\/uploads\/2023\/01\/GOLD-GRAPHIC-2023-POSITIONING-768x424.jpg 768w\" alt=\"\" width=\"901\" height=\"498\" \/> Charting gold prices and speculative positioning in COMEX gold futures \r\n \r\nAnalysts expect central banks to continue stockpiling gold after buying more metal in the first nine months of 2022 than in any year in half a century, according to the World Gold Council.\r\n\r\nRetail demand for gold bars and coins should also remain strong, boosted by a revival of economic growth in China, the biggest consumer market, said analysts at ANZ.\r\n \r\n <img class=\"wp-image-1108643\" src=\"https:\/\/www.mining.com\/wp-content\/uploads\/2023\/01\/GOLD-GRAPHIC-2023-DEMAND.jpg\" sizes=\"(max-width: 666px) 100vw, 666px\" srcset=\"https:\/\/www.mining.com\/wp-content\/uploads\/2023\/01\/GOLD-GRAPHIC-2023-DEMAND.jpg 666w, https:\/\/www.mining.com\/wp-content\/uploads\/2023\/01\/GOLD-GRAPHIC-2023-DEMAND-300x171.jpg 300w\" alt=\"\" width=\"666\" height=\"379\" \/> Global demand for gold broken down by segment \r\n \r\nBut gold may have gone too far too fast in the short term and needs to correct lower, analysts said.\r\n\r\n\u201cShould prices fall from current levels to the $1,870\u20131,900 an ounce range, we expect the (upward) trend to reverse,\u201d the bank said, adding that if gold falls below $1,800, it could slip to $1,730.\r\n \r\n <img class=\"wp-image-1108644\" src=\"https:\/\/www.mining.com\/wp-content\/uploads\/2023\/01\/GOLD-GRAPHIC-2023-TECHNICALS.jpg\" sizes=\"(max-width: 990px) 100vw, 990px\" srcset=\"https:\/\/www.mining.com\/wp-content\/uploads\/2023\/01\/GOLD-GRAPHIC-2023-TECHNICALS.jpg 990w, https:\/\/www.mining.com\/wp-content\/uploads\/2023\/01\/GOLD-GRAPHIC-2023-TECHNICALS-300x177.jpg 300w, https:\/\/www.mining.com\/wp-content\/uploads\/2023\/01\/GOLD-GRAPHIC-2023-TECHNICALS-768x454.jpg 768w\" alt=\"\" width=\"990\" height=\"585\" \/> Charting gold prices and technical indicators \r\n \r\n \r\n \r\n \r\n "

"Gold price seen rising towards record highs as rate rises near end"

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