Gold Hits New High, Soaring Above $2,300 for the First Time

By Jace Dela Cruz

Apr 05, 2024 04:30 AM EDT

Gold surged above $2,300 an ounce for the first time Thursday amid mounting concerns over inflation and economic instability.

Gold Price Reaches $2,304 an Ounce

As reported by This is Money, gold made a significant leap, reaching an impressive $2,304 during early trading before experiencing a slight downturn. This surge is part of a steady upward trajectory, with gold's value increasing by a remarkable 13 percent since the start of the year.

Gold is often sought after by investors during periods of economic uncertainty and is considered a safe-haven asset. Its recent surge, attributed to inflation concerns and anticipation of a decline in US interest rates this summer, underscores its role as a reliable investment option.

Gold Is Expected to Reach Heights of $2,500 to $2,600

Analysts at Bank of America expect that gold could soar to as high as $2,500 to $2,600 an ounce in the medium term. The positive momentum in the gold market impacted London-listed gold producers, like Fresnillo, which saw its stock prices increase by 3.2 percent.

Singaporean bank OCBC also expressed optimism about gold's future. In a note, OCBC said: "Gold's blistering rally may have further room to run in the medium term."

It added that historical evidence "since 2001 showed that gold strengthened when Fed rate hike cycle ended and continued to extend its bullish run when Fed rate cut cycle gets under way."

However, the bank still cautioned about the possibility of "a pullback," highlighting the risks associated with such volatile markets.