On August 20, world gold prices surged past $2,569 per troy ounce, marking a significant milestone in the gold market. This increase of over 1% is attributed to various factors, including geopolitical tensions and investor sentiment surrounding the upcoming US presidential elections. Analysts predict that gold could reach $2.7 thousand per troy ounce in the near future, with potential further growth to $3 thousand per troy ounce as the Federal Reserve's monetary policy evolves.
The rise in gold prices is also influenced by the actions of global central banks, which purchased a record 1,082 tons of gold in 2022. This trend has continued into 2023, with central banks buying 483 tons of gold in the first half of the year. The demand for gold is partly driven by the desire for financial stability amid geopolitical uncertainties and the risks associated with holding foreign currencies.
