Gold prices made a historic surge to hit a life-time high of $2,126 per ounce at the close on March 4, marking the highest closing since the inception of contracts in 1974. This remarkable milestone comes on the heels of a record-breaking peak in December 2023, when the prices touched $2,149 per ounce.
The latest spike in gold prices follows two consecutive weeks of gains, amid a backdrop of significant economic indicators. Notably, the US manufacturing sector recorded its 16th consecutive month of decline in February, while there was a downturn in US inflation, the value of the US dollar, and treasury yields.
Surprisingly, gold has continued to perform strongly, despite high interest rates and robust equity markets. Analysts have attributed this resilience to various factors, including global economic uncertainties and geopolitical tensions.
Watch: Gold prices are at 3-month high on the back of easing US inflation
Reflecting on the trajectory of gold prices in recent years, the precious metal saw a notable increase of 5 percent in 2023, building upon previous gains. This positive trend is projected to continue in 2024, with leading financial institutions offering diverse outlooks. ABN AMRO predicts a price of $2,000 per ounce, while UBS forecasts a more bullish outlook, with gold expected to reach $2,250 by the end of the year.
With all eyes on forthcoming US non-farm payroll data and Federal Reserve Chair Jerome Powell's speech at Congress, the gold market remains poised for further developments as investors closely monitor economic signals and geopolitical events.
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