Gold became more popular and rose in value: details
28 October 2024 16:00
Gold has significantly increased in price since the beginning of 2024. This is reported by "Komersant Ukrainian" with reference to Markets Insider.
The media note says that, according to Bank of America strategies, gold is increasing its attractiveness as other traditional assets of depositors become more risky. They advise investors, including central banks, to look to gold as a hedge against inflation and debt depreciation.
According to them, gold remains the only safe haven, forcing traders to increase risk. This is due to rising US government debt. Gold is also becoming an attractive asset because of rising interest payments as a share of GDP.
Analysts also predict that gold could become the asset of choice if markets fail to absorb the new US debt. They reiterate their forecast for a gold price of $3,000 an ounce by the end of next year, implying a rise of 11.1 per cent.
Investors have increasingly turned their attention to gold in recent weeks as the US Federal Reserve has embarked on a monetary easing cycle, cutting interest rates by 50 basis points last month, pushing the gold price up about 4.3 per cent over the past month.
Central banks around the world have also increased gold’s share of total reserves. Bank of America analysts say gold now accounts for 10 per cent of central bank reserves, up from 3 per cent a decade ago.
