Gold has reached its all-time high, surpassing $2,100 per ounce for the first time in history, a milestone achieved this Monday morning. While there was a slight adjustment afterward, the occurrence is surely historic. Many experts are optimistic about gold's future growth, and here's why.
To grasp the significance of this moment for XAUUSD, consider the last five days' movements, as it might not be as noticeable on other charts due to their scales.
Examining the all-history (okay, from 1970 to the present) allows us to appreciate the importance of the event. Even without the latest surge, gold remains as valuable as ever. The other critical function of this chart is to remind us one more time that gold has exhibited stable growth throughout its entire history.
By replacing US dollars with percentages and focusing on a specific timeframe, such as the 21st century, we observe a remarkable 618% growth in gold during this period.
The surge occurred following Jerome Powell’s speech, which further convinced investors that there was no reason to anticipate the next interest rate hike. Moreover, actions by Federal Reserve officials reinforce the belief that the first key rate decrease will happen sooner than initially estimated.
Initially discussed for 2024, then the first half of the year, and eventually May, experts increasingly predict that the change in monetary policy might occur as early as March. Such discussions and expectations exert pressure on the USD, supporting other major currencies. Given that gold is a primary defensive asset, particularly in challenging times, its appeal is understandable considering our current global challenges.
Many central banks also consider gold a great acquisition option in the following year. The plan to replenish gold reserves in 2024, with substantial volumes involved, has the potential to boost XAUUSD.
Three crucial factors demand attention: the interest rate decrease, the decline of the USD, and potential central bank purchases. These elements collectively could sustain gold prices above $2,000 in 2024, possibly even nearing $2,100. Considering the recent adjustment, this presents an appealing trading opportunity. Moreover, numerous experts anticipate continued gold growth in the upcoming years, with projections reaching $2,250 or $2,300 within a few years.
