LONDON, Jan 16 Reuters Gold prices are expected to rise towards record highs above 2,000 an ounce this year, albeit with a little turbulence, as the United States slows the pace of rate hikes and eventually stops increasing them, according to industry analysts.

Spot prices of the precious metal have shot above 1,900 an ounce, surging by about 18 since early November as inflationary pressures recede and markets anticipate less aggressive monetary policy from the U.S. Federal Reserve.

Fastrising interest rates hammered gold prices last year, kicking them as low as 1,613.60 in September from a high of 2,069.89 in March just shy of a record peak in 2020.

Higher rates lifted returns on bonds, making nonyielding gold less desirable for financial investors, and pushed the dollar to its strongest in 20 years, making dollarpriced gold costlier for many buyers. 

The weakening U.S. currency and bond yields will become macro tailwinds for the yellow metal, pushing gold above 2,000oz in the coming months, said analysts at Bank of America.

With less pressure from the dollar and bonds, investors are likely to buy bullion as a hedge against inflation and economic turbulence, said WisdomTree analyst Nitesh Shah, adding that prices could easily move above 2,100 an ounce by yearend.

Gold is traditionally seen as a safe place to store wealth. The risk of central banks overdoing it and pushing their economies into recession is high, said Shah.

Speculators who in November were betting…