Gold prices hit yet another all-time record high – Is $3,000 a possibility? [Video]
|Since the start of 2021, everyone from Goldman Sachs, JPMorgan to Bank of America called the beginning of a new Supercycle and hot-listed Commodities as their “preferred asset class over the next decade”.
Fast forward four years on and it goes without saying that this Commodity Supercycle shows no signs of slowing down anytime soon.
Right now, you certainly cannot talk about the Commodity Supercycle without mentioning Gold – And that’s because the world's favorite precious metal has firmly positioned itself as one of the best performing asset classes of 2024.
On Wednesday, a seemingly ordinary day for the markets turned into something extraordinary after Federal Reserve officials confirmed their outlook for three interest-rate cuts this year – sending Gold prices skyrocketing to a new all-time historic high of $2,222 an ounce.
Gold prices briskly flipped into supersonic mode, blasting through a new all-time high for the “third time” this month on comments from Fed Chair Jerome Powell signalling that while underlying inflation will come in slightly hotter and the strong jobs market slightly stronger – this will not dissuade the committee from lowering interest rates from their current 23-year high.
The FOMC’s latest statement leaves the central bank on course to begin cutting rates as early as the summer.
Interestingly, analysts at GSC Commodity Intelligence have routinely been quoted since the beginning of the year saying the Fed is ready to move and will deliver 75 basis points of rate cuts, starting in June”. That forecast is looking firmly on track to play out exactly as predicted!
There is no denying that Gold's record-breaking rally has been nothing short of impressive. Never before in history have we seen the precious metal score multiple all-time record highs in such a short space of time.
So far this month, Gold prices have breached $2,159 an ounce, $2,180 an ounce and the $2,222 an ounce mark – notching up three back-to-back all-time record highs within the last two weeks alone.
Just so you read that correctly, that's three back-to-back all-time record highs within the last two weeks alone.
And this could just the beginning!
Mounting evidence shows that we are now in a “new era” for the precious metal or as analysts at GSC Commodity Intelligence are calling it – “the beginning of a new historic Supercycle for Gold”.
Gold’s meteoric rise is being fuelled by magnitude of bullish tailwinds including persistent geopolitical tensions, strong central bank purchases, growing demand from China as a hedge against economic instability in the world’s second-largest economy, along with November’s high-stakes U.S presidential election – presenting a very supportive backdrop for Gold prices to reach $3,000 an ounce a lot sooner than anyone expects.
Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:
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