Tuesday, May 21, 2024
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LBMA says London gold price benchmark hits all-time high

The London gold price benchmark achieved a historic milestone, reaching an unprecedented high of $2,098.05 per troy ounce during an afternoon auction on Monday, as reported by the London Bullion Market Association (LBMA). This surpasses the previous record of $2,078.40 set on December 28.

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The LBMA, a prominent trade body responsible for certifying gold refiners, thereby granting them access to London’s bullion market—the largest in the world—oversees the LBMA Gold Price, serving as the global benchmark for unallocated gold delivered in London.

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Ruth Crowell, Chief Executive of LBMA, underscored gold’s enduring appeal for diversification, remarking on the significance of this latest milestone.

In the spot market, gold prices remained near a two-month peak on Monday, buoyed by lackluster US economic data from the previous week. These developments reinforced expectations for the Federal Reserve to implement its first interest rate cut of the year in June. Notably, gold reached a pinnacle of $2,135.40 in early December.

Gold’s performance has surpassed initial projections for the year, with Reuters’ January poll of analysts forecasting an average gold price of $2,053.50 per ounce for 2024. Similarly, the LBMA’s 2024 forecast survey anticipated a figure of $2,059.

However, analysts at Heraeus cautioned that despite this rally, gold may have entered overbought territory, suggesting the possibility of a correction downwards. They indicated that a return to the previous upward trend could see gold settling around $2,050 per ounce.

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