The price of gold briefly reached an all-time high of $2,110.80 U.S. per ounce before giving up some of its gains.
The record high comes after a two-month surge in the precious metal that began when war broke out between Israel and Hamas in early October.
Demand for the safe-haven asset continues to be strong, with many analysts forecasting that gold’s price will remain above $2,000 U.S. per ounce throughout 2024.
In addition to geopolitical uncertainty, the price of gold is also getting a boost from a weaker U.S. dollar and expectations for interest rate cuts in the year ahead.
Gold often performs well during periods of economic and geopolitical uncertainty due to its status as a reliable store of value.
The price of gold is currently trading at $2,085.80 U.S. per ounce. The previous all-time high for the price of gold was $2,072.49 U.S. an ounce reached in August 2020 during the pandemic.
According to a recent survey by the World Gold Council, 24% of central banks intend to increase their gold reserves over the next 12 months, a development that could further bolster the price of the precious metal.
The rise in gold prices is helping to lift the stocks of gold producers, with Canada’s Barrick Gold (ABX) seeing its share price rise 7% in the last month to $23.94.
