Gold hitting record high

SOURCE finance.yahoo.com
Gold hit a record high driven by U.S. monetary easing, geopolitical risks, and strong demand. Central banks have been net buyers of gold for eight consecutive months. Spot gold rose to $2,130.79 per troy ounce, with expectations of further upside. Independent analyst predicts gold to hit $2,300 this year.

Key Points

  • Gold hit a record high of $2,141.59 per troy ounce
  • Central banks have been net buyers of gold for eight consecutive months
  • Expectations of further upside towards $2,180
  • Independent analyst predicts gold to hit $2,300 this year

Pros

  • Growing expectation of U.S. monetary easing
  • Continued geopolitical risk buoying gold activity
  • Strong physical demand in Asia and central bank purchases
  • Gold's safe-haven cachet

Cons

  • Holdings in gold-backed ETFs continue to slide