Gold’s incredible rally in 2024 has progressed to the next stage, with prices continuing to rise this week and pushing gold in GBP to a new milestone of £2,000 per ounce.
Last week’s bumper cut to US interest rates, fiscal stimulus from China, and further escalation to the conflict in the Middle East have all contributed to gold’s price gains this week, and the metal has seen consistent increases every day.
New records have been set in USD ($2,670.79), Euros (€2,397.95), and a key milestone for gold in pounds having broken through £2,000 per ounce for the first time this morning. Prices remain elevated and it appears the rally has further momentum given the current outlook.
Silver has also enjoyed it’s own rally this week, rising more than 3% to retake $32. With gold sitting at increasing all-time highs however, silver still has a lot further to go to match gold. The gold-silver ratio is sitting at 83 currently, and is still a ways off the low 70s seen during the spring rally. Fears of a recession may be holding silver back, but the alternative metal should continue to benefit from gold’s rally.
Events in the Middle East have escalated significantly this week, and Israel are now suggesting a possible invasion of Lebanon, continuing to push back against any hopes of a ceasefire in the region.
It is now less than six weeks to the US election, and polls remain very close. America remains bitterly divided and the uncertainty of the election, and what will happen in the weeks that follow will likely support the gold price. Two days after the election, the Federal Reserve will announce their next rate decision and more cuts are currently expected, with another 50 basis point cut currently the favourite. If so, a 100 basis point cut in the space of two meetings would be very aggressive and could spark further dollar weakness.
The next few weeks then look very supportive for the gold price, and further gains are forecast by analysts. $2,700 is the next major milestone in USD, and the current pace of gains suggest it may not be long until this is breached.
