GOLDCeylon | Gold News | 2024.01.01
Gold investors anticipate record-high prices year 2024, when the fundamentals of a dovish pivot in U.S. interest rates, continued geopolitical risk, and central bank buying are expected to support the market after a volatile 2023.
Spot gold is on track to post a 13% annual rise in 2023, its best year since 2020, trading around $2,060 per ounce.
On Dec. 4, 2023, gold hit a record high of $2,135.40 on bets of U.S. monetary policy easing in early 2024 after a perceived dovish tilt from Federal Reserve Chair Jerome Powell, surpassing the previous record scaled in 2020.
The precious metal almost made uncharted territory in May this year as a U.S. regional banking crisis took hold. By October, it had retreated close to $1,800 an ounce until safe-haven demand triggered by the Israel-Hamas conflict spurred another rally.
Investors returned to the popular SPDR Gold Shares exchange-traded fund, which posted net inflows of over $1 billion in November.
J.P. Morgan sees “a breakout rally” for gold in mid-2024, with a targeted peak of $2,300 on expected rate cuts. UBS forecasts a record of $2,150 by the end of 2024 if cuts materialise.
The World Gold Council, in its 2024 outlook, projected that a drop of about 40 to 50 basis points in longer maturity yields, following 75-100 points of rate cuts, could translate into a 4% gain for gold.
Source: World Gold Council
Published by GOLDCeylon