"Everyone must be happy, I hope the price of gold can go up again."
The yellow metal at the opening of the Asian market session this morning surprised as the price once again climbed to a high near $2,440 from its trading close last week at $2,411.
The astonishing rise in the price of the precious metal has been supported by traders' new hope that the United States Federal Reserve (Fed) will cut interest rates soon.
Explained further, traders expect almost two quarter-point cuts from the Fed this year, with November 2024 likely to be a key starting point for interest rate cuts.
Not only that, the People's Bank of China (PBoC) which bought gold for the 18th month in a row in April 2024 by adding 60,000 troy ounces of gold to its reserves is also the reason for the high price of gold.
The rise in price was also driven by Chinese investors who were found to have switched to gold as a safe-haven asset to protect the value from the economic uncertainty that has been increasing lately.
It would also like to be informed that the latest data shows that Turkey and many countries in the Middle East have taken action to buy gold bars.
Even so, traders and buyers of gold this week still need to be careful following the minutes of the Federal Open Market Committee (FOMC) meeting on May 22 and the US Consumer Confidence data on May 24 which could have an impact on gold prices.
Through observation, the recent breakout could push gold to continue its rise up to $2,432 and $2,500 but if it fails then the price could slip back to $2,355 or $2,340.
