The price of gold closed at a record high for the 28th time this year after market volatility this month increased demand for the precious metal, considered a safe haven for investors during times of crisis. December gold futures closed at $2,546.80 an ounce, up 1.8%, on the New York Mercantile Exchange. Gold prices, which climbed four out of five trading days this week, posted a weekly gain of 2.6%.
“There are still many market risks and investors who buy gold recognize the range of instability factors around the world – from geopolitical risks to financial risks,” said Peter Spina, founder and president of the precious metals news site GoldSeek.com, in an interview with MarketWatch. “Gold benefits from being considered a safe haven.”
According to Spina, the gold market is in the midst of “historic times, but few are noticing, especially in the West.” This lack of attention could be attributed, in part, to the under-representation of gold and silver in mainstream Western media. While these precious metals are experiencing significant growth, some argue that traditional financial news outlets haven’t given them the coverage they deserve. This creates a situation where investors may be missing out on crucial information about a potentially lucrative asset class.
The price of gold could continue to rise significantly from its current level when the Federal Reserve begins to cut interest rates in the United States, Spina estimated. Gold, which is a non-interest-bearing asset, becomes relatively more attractive as interest rates fall.
“All the ingredients are in place for gold to roar to record highs in the coming months,” adding that $3,000 an ounce now seems a lot closer and probable than it did at the start of summer.
Gold prices should test $3,000 by the end of the first quarter of 2025, he said, as these strong gold market demand dynamics continue.
“Once the mainstream financial media starts to recognize the stealth bull market in gold, the stealth bull market will really start to run a lot faster and higher,” said Spina. “This could really turn into a much larger bull market run if the Wall Street crowd really rushes into the gold market.”
Source: marketwatch