Gold to enter 2024 with sights set on record highs
By Deep Kaushik Vakil
(Reuters) — Gold investors anticipate record high prices next year, 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.
«Following on from a surprisingly robust performance in 2023 we see further price gains in 2024, driven by a trifecta of momentum chasing hedge funds, central banks continuing to buy physical gold at a firm pace, and not least renewed demand from ETF investors,» Saxo Bank's Ole Hansen said.
On Dec. 4, 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 (NYSE:GLD) exchange-traded fund, which posted net inflows of over $1 billion in November. [GOL/ETF]
A Reuters poll in October forecast prices will average $1,986.50 in 2024. They have averaged above $1,950 so far this year, above any previous yearly average price. [PREC/POLL]
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 end-2024 if cuts materialise.
The World Gold Council, in its 2024 outlook, projected that a drop of about 40 to 50 basis
Read more on investing.com
