The record breaking gold rush may continue until the end of the year.
Ben Emons from NewEdge Wealth stated that there is usually a greater demand for gold in the last month of the year.
"The situation is very stable every December. Gold's performance is quite strong, especially during the stock market rebound in November," the head of the company's fixed income department said on CNBC's "Fast Money" program last Tuesday.
Last Friday (December 1st), gold prices closed at a historic high. Gold futures closed up nearly 2% on the same day, at $2089.70 per ounce.
Emons listed economic and geopolitical backgrounds as additional positive catalysts for gold.
"There is uncertainty next year. We are going to have elections. We don't know what will happen. We may or may not fall into recession. At the same time, when there is a feeling of risk in the market, gold will rise, which is actually when real interest rates and interest rates fall. This provides a good driving force for gold prices to break through."
Emons wrote in a report to clients this week that gold and stocks were a "rare combination" for several months. In November, gold rose by 3%, while the Dow Jones index and the S&P 500 index both rose by nearly 9%.
"It often occurs when the market is digesting major easing cycles," he wrote. "At present, this situation is occurring in a mild manner, which raises concerns about the seasonality of gold."
Emons believes that this momentum will continue until next year.
"In the context of reduced supply, central banks around the world are once again bidding higher than gold prices, which may lead to a significant breakthrough in gold prices towards 2100... By early 2024, backward enterprises such as utilities have the opportunity to occupy market leadership positions."
Fast money trader Guy Adami also believes that the glittering gold is related to the recent performance of the US dollar.
"If interest rates continue to fall, the US dollar will also fall. This will be beneficial for gold." "Gold prices may break through the upward trend significantly."
As of last Friday's close, gold prices have risen by over 14% so far this year.
