Throughout the year, gold has seen its value surge due to increased demand throughout the globe. That has led the metal to reach new all-time highs at several points in 2024. Now, after standing firm at its recent level, the gold price could be eying $2,400 amid Central Bank interest rate decisions.
Currently, the gold price is at $2,333 and has increased over the last 24 hours. However, the market has anticipated a surge in value over the next week or so. Specifically, the haven asset may be set to benefit from ongoing geopolitical unrest, and interest rate decisions from various central banks.
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Gold Price Poised to Make Run at $2,400 This Month
In 2024, both interest rates and gold will be two of the most discussed topics in the finance sector. The latter had increased notably in price, beginning in December 2023. Alternatively, the former was one of the most important facets of projections for the United States and other economies across the globe.
Now, one is set to influence the other as the gold price is eyeing $2,400 amid the recent Central Bank interest rate decision. Gold has been a beneficiary of increased Central Bank interest, primarily through increased demand from China.
However, it is now set to benefit from various central bank decisions regarding interest rates. Some, like the Bank of England, opted to keep rates unchanged, echoing the United States approach. However, central banks like Sweden’s Risbnank and the Swiss National Bank enacted cuts.
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Sweden opted to cut interest rates by 0.25%, while Switzerland decided to cut them in March. Moreover, these developments were crucial to the metal’s current increase above the $2,320 level.
The question now remains about where it could go in the coming weeks. The asset is still a strong haven asset, and China has not relented in its acquisition strategy. Moreover, geopolitical concerns have increased overall unrest, which tends to be a positive factor for gold’s value on the market.
The main catalyst that gold will have to contend with is the United States. The Federal Reserve has not yet cut interest rates, and the market is unaware of when the initial cut will take place. There is optimism that the cut will come this year, but the uncertainty has resulted in Gold’s inability to gather enough momentum for a sustained rally.