Gold is now up to $2,125.11 and could see higher highs.
For one, investors are jumping into the safe havens of gold for protection against economic and geopolitical chaos. Two, gold demand is expected to hit another record this year, as central banks continue to buy the safe haven, according to the World Gold Council. “Central-bank buying maintained a breakneck pace, with annual net purchases of 1,037 tons last year, just 45 tons shy of the record set in 2022, the WGC said in the report. It expects central-bank buying to top 500 tons this year,” added Bloomberg.
Three, traders are jumping into gold on hopes the Federal Reserve will start cutting interest rates in the second half of the year. As noted by CNBC, “When rates fall, gold prices typically rise as investors seek a safe haven as assets such as bonds become less attractive because they no longer deliver attractive yields.”
That being said, investors may want to keep an eye on gold stocks, like Barrick Gold (GOLD).