Can gold price climb to $2,400 levels in 2024 — explained with 5 reasons

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Also Read: Why silver outshined Nifty 50, gold in November 2023 — explained The projection of gold reaching $2,400 in 2024 is intricately tied to a complex web of economic, geopolitical, and market dynamics. These factors collectively paint a picture of gold as a resilient and sought-after asset, offering stability and value in the face of a myriad of global uncertainties, Kedia Advisory said in a report. Kedia lists out certain key factors that may lead to further rally in the gold prices.

Here are top 5 factors that are likely to support gold prices: Gold prices are linked to US inflation rates. When interest rates are low, the relative attractiveness of non-interest-bearing assets like gold increases as the opportunity cost of holding bullion decreases. The US Federal Reserve officials this week flagged the possibility of a rate cut in the upcoming months and expected growth to slow down and inflation to continue to ease, dragging yields on 10-year Treasury notes to a two-and-a-half month low of 4.2470%, Reuters reported.

The prospects of interest rate cuts in 2024 is a major catalyst that may contribute to upward momentum in gold prices. Gold buying by central banks around the world has been at a historic pace. The gold demand (excluding OTC) in the July-September quarter increased to 1,147 tonnes, which was 8% higher than its five-year average.

According to the World Gold Council’s latest report, central banks have bought a net 800 tonnes of gold year-to-date (YTD), the highest on record for that nine-month period. Also Read: RBI joins central bank gold rush, buys 9 tonnes in Jul-Sep Kedia believes high inflation will prevail going ahead which will support the yellow metal prices. Gold acts as a hedge against