The gold market has surged surpassing its longstanding record as the dollar plunged. For investors, gold prices are at a record high and many are predicting these prices could continue to surge as geopolitical uncertainties drive a rush for safer assets. But what is the gold price today and what do analysts expect for the future trend of gold?
What is the gold price today?
At the time of writing the current price of gold is £48.57 ($62.38) per gram and £48,574 ($62,380) per kilo, according to BullionVault’s gold price chart.
The current gold price per ounce is £1,510.82 ($1,940.23).
Last week, the gold price week high hit $62,514.55 (£48,714.15) and the week low hit $58,185.46 (£45,340.73).
In the morning of Asian trading hours on Monday, spot gold traded at about $1,931.11 (£1504.81) per ounce.
This figure was reported after earlier trading as high as $1,943.9275 (£1514.80) per ounce.
Those levels eclipsed the previous record high price set in September 2011 of $1.920.30 (£1,496.38).
Gold futures were also up 1.54 percent to $1,926.70 (£1,501.37).
Commonwealth Bank of Australia’s Vivek Dhar, mining and energy commodities analyst told CNBC: “We think the current momentum in the next few months will cross the $2,000 an ounce mark.
“The key question is how much does the rally increase after that.”
Gold prices could even surge beyond $2,500 (£1,948.11) per ounce according to Mr Dhar.
Precious metals dealer J. Rotbart & Co. managing partner Joshua Rotbart also predicted gold prices would soar beyond $2,000.
He told CNBC: “With current conditions of loosening monetary and fiscal policy, global recession, unemployment and governments cannot control this. I think we will see (gold prices) heading over the $2,000 mark.”
Are gold prices going to crash?
The future trend for gold prices depends on this week, particularly the Federal Reserve’s rate announcement on Wednesday.
Analysts believe the Federal Reserve will hold the interest rate at the current level, which will impact the dollar price and subsequently affect gold prices.
A dovish monetary policy stance typically proves harmful to the dollar and positive for the gold price and vice versa.
Gold traders will be watching the stance of Federal Reserve policymakers when they meet later this week.
Expectations are that interest rates will remain near zero, while markets will also be watching for any signals around shifts in strategy.
Published at Mon, 27 Jul 2020 09:51:00 +0000