The surge in gold prices in 2024 has led to new record highs for the precious metal. The increase in gold prices can be attributed to various factors that are driving the price higher.

Three Key Factors Behind Gold's Rise in 2024

One significant factor influencing the rise in gold prices is the relatively weak performance of the US Dollar. The US Dollar Index (DXY), which measures the dollar's strength against other currencies, has slightly declined, making gold more appealing to investors holding other currencies. This has propelled gold prices to exceed $2,270 per ounce.

Anticipation surrounding the Federal Reserve's monetary policy has also played a crucial role in boosting the gold market. Expectations of interest rate cuts by the Fed in 2024 have contributed to the optimism among investors, especially after recent data showed low inflation levels.

Additionally, despite positive economic indicators in the US, such as the Manufacturing Purchasing Managers' Index (PMI) returning to expansion territory, gold prices have continued to rise. This trend is fueled by investor confidence in the anticipated interest rate cuts by the Federal Reserve, supported by the latest inflation data aligning with the Fed's inflation control targets.

Gold Price Overview in 2024

The year 2024 has seen gold prices hitting new highs, surpassing $2,270 per ounce in the early months of the year. As of April 02, 2024, gold was trading at $2,259.10 per ounce, showing a substantial increase from the average closing price of $1,943.00 in 2023.

Technical analysis indicates a strong demand and upside momentum in the gold market, with short-to-long-term Moving Averages (EMAs) and the 14-period Relative Strength Index (RSI) around 78.00.

Share your thoughts on whether the gold rally will continue throughout 2024 in the comments section below.

Disclaimer: The author has no positions in any securities mentioned in this post.

The post "Factors Contributing to Gold Price Surge in 2024" was published by Tokenist.