Stock market: gold explodes to $2,470! A record!

On Wednesday, July 17, 2024, gold prices hit record highs on the U.S. stock market. The futures price of the yellow metal rose 0.1% to $2,470.20, while the spot price held steady at $2,466.02 per ounce. This spectacular increase is explained by several economic and geopolitical factors.

The Causes of the Rise in the Price of Gold

The price of gold has exploded to $2,470 on the stock market, and several factors can explain this rise. First, the actions of the BRICS: their massive and continuous purchases of gold have significantly contributed to the rise in gold prices. By accumulating gold reserves to support a potential common currency, these countries have increased global demand, thus pushing prices to record highs.

Then there is the weakness of the U.S. dollar. The U.S. dollar stock index (DXY), which measures the dollar's strength against a basket of foreign currencies, has been slightly lower lately, making gold more attractive to foreign investors.

Finally, investors' expectations of a more accommodative monetary policy from the FED also played a crucial role. The anticipation of an imminent interest rate cut after Jerome Powell's recent speech probably encouraged stock market investments in gold.

Stock market: future prospects for the yellow metal

Stock market analysts are divided on whether this rise will continue. Some predict that the lesson Gold prices would continue to rise due to the persistence of current factors. Others believe that prices could stabilize or even decline if economic conditions improve and interest rates rise.

As a result, gold price predictions for 2025 and beyond vary. Some experts predict a moderate increase, with prices reaching around $2,450 per ounce by the end of 2025. Longer term, stock market projections are even more optimistic! Some analysts anticipate prices reaching between $4,600 and $6,879 per ounce by 2035.

Although gold prices reached record highs in July 2024, the future will largely depend on global economic developments and monetary policies. Investors should therefore remain vigilant and closely monitor stock market trends.