Gold to hit record high next year - Reuters

Reuters reported this week, citing industry experts, that gold prices are expected to rise further in 2024 as uncertainty over the global economic outlook increases demand for gold as a safe-haven asset.

Gold bullion ended the year at $2,063 an ounce for the first time in three years, up more than 13% from last year, reaching $2,110 an ounce earlier this month. After an aggressive rate hike cycle that began in early 2022, prices have been rising for more than two months, driven by expectations that the US Federal Reserve (Fed) will cut interest rates and investor demand amid concerns about an economic recession. In the Middle East, the appeal of gold as a haven has grown. All these factors and more are expected to keep gold prices rising in 2024.

"After a surprisingly strong performance in 2023, prices are expected to rise further in 2024, driven by a trio of hedge fund chasers, continued aggressive purchases of physical gold by central banks, and ultimately renewed demand from ETF investors. .” Saxo Bank Ole Hansen Old Reuters. JPMorgan also expects gold prices to reach $2,300 in mid-2024 when the US is expected to cut interest rates. UBS expects precious metal prices to reach $2,200 by the end of next year due to geopolitical risks and rising inflation. In its 2024 outlook released earlier this month, the World Gold Council expected central banks to continue buying gold, which could provide additional support for gold and make it more attractive.

However, some warn that the situation could change if US inflation picks up again. "Gold could reverse some of this year's gains if a rebound in inflation forces the Federal Reserve to abandon its plans for policy changes in 2024," Han Tan, principal market analyst at Exinity, told Reuters.