Gold Had Its Best Week in Months, But Could It Break $2000?
Last week, gold surged significantly after the terrorist attacks from Hamas on Israel, marking its best performance in months. Experts believe it may surpass the $2000 per ounce mark by the end of 2023.
Several factors may keep driving the price up:
Economic Uncertainty
The global economy remains unstable due to various factors, such as inflation concerns, market fluctuations, and the many geopolitical tensions that are currently taking place. Investors often do and have been turning to gold because of these economic issues and concerns.
Inflation Concerns
Speaking of economic concerns, there is the very real issue of inflation. Gold is a traditional hedge against inflation, and the fear of rising prices and currency devaluation attracted investors seeking protection against inflation. The current inflation rate is at 3.7%, an improvement from last year but still higher than people should be comfortable with. People keep flocking to gold to protect their wealth as prices of other items keep climbing.
Geopolitical Tensions
Ongoing global disputes and conflicts, such as those in Ukraine and Israel, have increased the appeal of gold as a safe-haven asset. The war between Russia and Ukraine has no signs of slowing down, and the conflict in Israel could lead to unrest in the entire Middle East. With the threat of even more violence, people worldwide are turning to gold to protect assets, and this increased demand affects the gold price even here in the United States.’
Conclusion
In summary, there is plenty of potential for gold to keep climbing as we get closer to the start of 2024. This is far from a guarantee that gold will hit $2000, it is impossible to be sure, however, if it does reach that point again this year, no one should be surprised.
