NEW YORK (Agencies): Industry experts predict that gold prices will continue to rally in 2024 due to ongoing uncertainty about the global economy, driving safe-haven demand for the precious metal, as reported by Reuters.
Gold finished the year at $2,063 per ounce, marking a year-on-year surge of over 13%, its first annual gain in three years. Earlier this month, it reached an all-time high of $2,110 per ounce. The upward trend in prices has been fueled by investor demand amid recession fears and expectations of interest rate cuts by the US Federal Reserve, following an aggressive rate-hiking cycle that began in early 2022. Additionally, heightened geopolitical tensions in the Middle East have increased the safe-haven appeal of gold.
Experts anticipate that a combination of factors, including momentum-chasing hedge funds, central banks continuing to purchase physical gold, and renewed demand from ETF investors, will contribute to further price gains in 2024. JPMorgan predicts a “breakout rally” for gold in mid-2024, forecasting a peak of $2,300, while UBS sees bullion reaching $2,200 by the end of next year, citing heightened geopolitical risks and inflation.
In its 2024 outlook, the World Gold Council also anticipates that central banks will maintain their gold-buying spree, providing additional support for gold and enhancing its overall appeal.