The metal has appreciated by more than 22% so far in 2024, while Brent oil has lost 7% and WTI 5.7% over the same period.
While Gold hits new all-time highsoil would follow a bearish path as it is under pressure. Thus, The precious metal will continue its bullish streak, against the grain of rawwhere Analysts expect prices to move lower.
In the analysis of the quotation of gold During the year, it is evident that it had a rise of 22% so far in 2024, and thus, the metal is on track to close its best year since 2020.The increase is based on geopolitical uncertainties, expectations of interest rate cuts and a strong purchasing appetite by central banks.
The metal is currently trading at around $2,524, which is the highest level in history. This milestone was reached in recent weeks and was an all-time high that was reached on several occasions. This was due to the need of investors to invest in safe haven assets.
The prospect of a weaker dollar has made bullion more attractive to both domestic and international investors. Added to this are the increasingly clear bets that the US Federal Reserve (Fed) will cut interest rates in September.
Looking ahead, experts expect that Gold remains near record highs: “We believe gold will remain firmly focused on the scope and timing of the Fed’s likely rate cut decision.”
How will the oil price continue in the short term?
Concerns about demand in Asia and ceasefire talks in the Middle East are affecting the price of a barrel. So far this year, Brent oil loses 7%, WTI 5.7%.
Market sentiment remains bearish, experts say. Concerns about China-centric demand persist. Recently released data reinforces the view that Chinese oil demand is weakening.
The other key development weighing on crude prices is the prospect of a ceasefire between Israel and Hamas. US Secretary of State Antony Blinken said Israel has agreed to a ceasefire, or at least a “temporary” proposal for a ceasefire.
“This helped ease some fears about supply risks hanging over the oil market. However, we still have to see whether Hamas accepts the deal and, if it is achieved, whether the ceasefire holds. Oil prices are likely to remain sensitive to developments in this regard,” market sources said.
Source: Ambito
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