Gold is on course to hit a new all-time high with momentum building amid a surge in safe-haven demand. During trading yesterday (Tuesday), the yellow metal leaped over the critical £1,610 resistance hurdle, giving a sneak preview of the kind of strength we can expect to see going into 2024.
The bull’s rally came as tensions in the Middle East pushed some of the world’s largest shipping companies to re-route journeys through the Red Sea. Houthi rebels have been attacking vessels sailing into and out of Israel in a bid to pressure the government into a ceasefire with Gaza. As a result, shipping firms like Maersk, along with others including BP have announced they will instead sail through the Cape of Good Hope in South Africa. This diversion means shipments will be delayed around two weeks, and push up costs, which could impact already strained international supply chains.
With global trade at risk, gold is shining brightly in its capacity as a safe-haven. If further disruption occurs, it could even break through to new record highs. Don’t delay. Buy gold now.
