Investors in gold are excited on Tuesday as the spot price of the precious metal hit a recent high of $2,113.28 per ounce during a rally yesterday.
The increasing price of gold is catching up to its current record high of $2,135.40, which was achieved in December 2023. To understand why gold is gaining lately, we have to look to the Federal Reserve.
Investors in gold are hoping that the Fed is done with interest rate increases. In fact, many are betting that the agency will drop interest rates starting in June. Considering the extra weight that high interest rates have had on the economy, this is welcome news for investors in both gold and the stock market.
Where Will the Price of Gold Go Next?
JPMorgan Chase Research is predicting that gold prices will hit a new record high of $2,300 per ounce in 2025. This is contingent on the Fed introducing 125 basis points of interest rate cuts over the second half of the year.
Gregory Shearer, head of Base and Precious Metals Strategy at JPMorgan Chase, said the following about gold prices:
“We think over this period, the Fed cutting cycle and falling U.S. real yields will once again become the mono-driver behind gold’s breakout rally later in 2024. Gold’s inverse relationship to real yields has historically been weaker over Fed hiking cycles, before strengthening again as yields fall over a transition into a cutting cycle.”
Investors will want to keep an eye on gold prices going forward alongside the rest of the stock market.
We can help with that as we have all of the hottest stock market news traders need to know about on Tuesday! That includes everything happening with Momentus (NASDAQ:MNTS), Dorchester Minerals (NASDAQ:DMLP) and Seres Therapeutics (NASDAQ:MCRB) today. All of that news is ready at the links below!
More Tuesday Stock Market News
- MNTS Stock Alert: Momentus Snags NASA Contract
- DMLP Stock Earnings: Dorchester Minerals Reported Results for Q4 2023
- MCRB Stock Earnings: Seres Therapeutics Beats EPS for Q4 2023
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
