The price of gold today, August 15, 2024, plummeted after a breakout to near an all-time high.

For the past two consecutive sessions, gold has rallied strongly amid signs of deflating inflation in the U. S. economy, while geopolitical tensions in the Middle East and Ukraine have escalated.

The price of gold has risen another $70-80 and is just short of the historic high of $2,483 set on July 17th by less than $10 thanks to a lot of supporting factors.

However, selling pressure rose sharply at the beginning of the August 14 trading session in the New York market (Eastern Standard Time) even though the US Bureau of Labor Statistics published a positive consumer price index (CPI). Accordingly, U. S. inflation increased 0. 2% in July as expected by economists but inflation over the same period only grew 2. 9%, lower than expectations of 3%.

Lower inflation would give the Federal Reserve more leverage to cut interest rates early. The dollar will fall when the Fed reverses monetary policy. Usually, gold moves against the dollar.

In fact, the DXY index - a measure of how well the US dollar compares to six other major currencies - dropped sharply to 102. 5 points.

Gold's decline is attributed to the fact that investors had high expectations of gold and pushed prices closer to record highs, but demand was not strong enough for it to break past old records.

Gold price forecast

The immediate profit pressure skyrocketed, which was also predicted as the item had risen about 36% since October 2023 to the beginning of the 14 August session.

For the foreseeable future, gold will continue to be viewed as a high-security asset that attracts investors.

Tensions in the Middle East and Ukraine are expected to weigh heavily on gold prices, amid fears of conflict spreading across the region following the assassination of Hamas political leader Ismail Haniyeh in Iran and an Israeli airstrike that killed Hezbollah's senior military commander Fuad Shukr in Lebanon.

Gold is still projected by many organizations to reach $2,500 an ounce in the second half of this year.

US adds troops to the Middle East, Ukraine tensions: Gold prices near historic highGold prices have soared to near historic highs amid escalating geopolitical tensions in many regions as the United States moves more troops and military equipment into the Middle East ahead of a possible Iranian attack on Israel, while conflict in Ukraine poses new threats.