Gold Prices Predicted to Hit Record Highs of $2,300 in 2024

Gold Prices Predicted to Hit Record Highs of $2,300 in 2024
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The U.S. Fed’s rate cuts, elevated central bank gold buying, and geopolitical and economic uncertainties are expected to boost the yellow metal.

fter prices jumped in 2023, gold is entering 2024 with many experts suggesting the safe haven asset could hit record highs this year.

In 2023, gold prices jumped from around $1,823 per oz. to $2,062 per oz.—an increase of over 13 percent—making it the best year for the yellow metal since 2020. On Dec. 4, gold hit a record-high price of $2,135.40 per oz. For 2024, experts predict gold prices to move higher.

“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,” said Saxo Bank’s Ole Hansen, according to Reuters.

JP Morgan predicts gold to see a “breakout rally” starting in the middle of this year due to Federal Reserve’s interest rate cuts. The bank expects gold to hit a peak of $2,300. Meanwhile, UBS projects gold prices to hit $2,150 by the end of this year if the rate cuts were to take place.

Gold saw major ups and downs in 2023, as one event after another affected investor perception. In May, the U.S. banking crisis pushed gold down to a low of $1,810 per oz. by early October. However, the Hamas attack on Israel that month triggered tensions and gold prices have been rising since then.

In November, the SPDR Gold Shares ETF, a popular exchange-traded fund tracking gold, saw net inflows of more than $1 billion, breaking five consecutive months of outflows. This was also the strongest month of net inflow since March 2022, highlighting growing investor confidence in gold amid uncertain conditions.

An Oct. 31 update by the World Gold Council (WGC) revealed that global central banks collectively bought “an astonishing” 800 tons of gold in the first three quarters of 2023. This is a 14 percent increase in gold buying compared with the same period last year.

A May 30 survey published by the organization found that a majority of central banks expect the proportion of their total reserves denominated in gold to increase over the next five years, thus contributing to upside pressure on gold prices.

Gold and Economic Scenarios

The WGC has three different predictions for gold rates this year depending on how the economic scenario plays out, according to its Gold Outlook 2024 report.

If there is a “soft landing” of the U.S. economy, which WGC attributes a 45 to 65 percent probability, the organization expects gold prices to remain “flat with upside potential.”

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3 Responses to "Gold Prices Predicted to Hit Record Highs of $2,300 in 2024"

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