Gold is expected to outshine other metals this month after scaling a one-month high last week, according to precious metals analysts, Khaleej Times reported.

Spot gold was up 0.6% at $2,046.29 per ounce as of 14:10pm ET, Reuters reported. US gold futures gained 0.6% to settle at $2,054.7.

Analysts at Daily FX were of the view that such a bullish breakout was due to moderate pullback in US Treasury yields that resulted after two significant economic reports, prompting investors to think about their implications for the Federal Reserve’s monetary policy stance.

The next higher target for the yellow metal is $2,100, analysts at FX Empire stated and added that gold’s last record high was set in December at $2,135. They added that the yellow metal was on track to close strong, in the top 25 per cent of the day’s trading range.

Ole Hansen, the head of Commodities Strategy at Saxo Bank, hailed the gold’s performance in the international market amid underlying demand for physical gold and the softer dollar and increasing cost of holding a non-interest paying gold position and the obsession with AI-related stocks and cryptos.

“We keep a bullish outlook for gold and, with that, also silver, but as we have highlighted on several occasions in recent months, both metals are likely to remain stuck until we get a better understanding of the delivery of future US rate cuts,” said Hansen.

Also, read this

Gold prices extend gains in Pakistan

Soaring bitcoin set for biggest monthly jump since 2020

Bank of America forecasts gold to trade close to $2,200 by December 2024 because of dollar’s limited upward movement, recent declines in yields, and a favorable Commitment of Traders report.

According to JPMorgan, both gold and silver were well-positioned to perform over the next 12 to 18 months whether the US experiences a soft or hard landing.

The firm added that it was expected that gold would continue to attract attention this year as there have been several banks causing ripples of anxiety through the markets.