Gold futures in New York hit a record high in early December and look set to surpass that peak heading into the New Year.
The London Gold Market Association (LBMA) said the benchmark price of gold in London hit a record high of $2,069.40 an ounce during Wednesday afternoon's auction, surpassing the previous record of $2,067.15 an ounce set in August 2020.
"Gold's role as a store of value is best illustrated by the enthusiasm with which global investors have turned to gold amid recent economic and geopolitical turmoil," said Ruth Crowell, CEO of LMBA.
JPMorgan predicted the index would hit a new record back in July, but expects the new high to come in the second quarter of 2024. The basis of jpmorgan's 2024 optimism - lower U.S. interest rates - remains unchanged:
"The bank has an average price target of $2,175 per ounce for gold in the final quarter of 2024, with risks tilted to the upside due to predictions of a mild recession in the U.S. before the Federal Reserve begins to ease monetary policy."
Despite record gold prices, exploration spending on the precious metal has declined. A study released in November showed overall mining exploration budgets fell this year for the first time since 2020, falling 3 percent to $12.8 billion among 2,235 companies allocating funds to find or expand deposits.
Despite the glittering gold price, gold exploration budgets fell 16 percent, or $1.1 billion, year on year to just under $6 billion, or 46 percent of the global total. Historically, gold exploration budgets have been primarily driven by the primary mining sector, rather than any other metal or mineral.
This is down from 54% in 2022 due to increased spending on lithium, nickel and other battery metals, surging spending on uranium and rare earths, and rising demand for copper.
