As the year drew to a close, we witnessed a dovish turn from the Fed on US interest rates. Added to this are ongoing geopolitical risks. Additionally, central bank purchases have been supportive for gold in 2023. In this environment, analysts’ gold predictions for the new year will make investors happy. Analysts expect record high prices next year.
“We anticipate further price increases in the new year!”
cryptokoin.comAs you follow from , spot gold managed to close 2023 with an annual increase of 13.6%. Thus, it had its best year since 2020. For gold predictions, Ole Hansen from Saxo Bank makes the following comment for 2024:
After a surprisingly strong performance in 2023, we forecast further price gains in 2024, driven by the trio of momentum following hedge funds, central banks continuing to buy physical gold at a solid pace, and renewed demand from ETF investors.
Heraeus Metals, JP Morgan, UBS and WGC 2024 gold forecasts
The precious metal reached almost uncharted territory in May this year due to the impact of the regional banking crisis in the US. Safe haven demand triggered by the Israel-Hamas conflict spurred another rally. Investors returned to the popular SPDR Gold Shares exchange-traded fund, which recorded net inflows of over $1 billion in November. Heraeus Metals expects demand for gold jewelery to increase this year in China, the largest consumer. For this reason, he expects gold to receive more support from incentive measures in 2024.
For gold forecasts, JP Morgan predicts “a breakout rally” for gold in mid-2024. In this direction, it aims for a peak of $ 2,300 with expected interest rate cuts. UBS predicts a record $2,150 by the end of the year if discounts occur. In its 2024 outlook, the World Gold Council (WGC) predicts that a decline in long-term yields of around 40 to 50 basis points, following interest rate cuts of 75-100 percentage points, would mean a 4% gain for gold.
Han Tan: This would be negative for gold!
Analysts predict that safe haven demand will increase the attractiveness of gold next year. The first factor that will play a role in this is the uncertainty arising from conflicts in the Middle East and elections in major economies. It is necessary to add to this the central bank purchases led by China. But Exinity’s chief market analyst, Han Tan, looks at it from a different perspective. In this context, the analyst makes the following comment:
If inflation rises again, forcing the Fed to abandon its plans to change policy in 2024, gold may have to give back some of its gains this year.
Gold forecasts from a technical perspective: Outlook solid
Gold closed 2023 above $2063. According to analysts, technical data points to price increases in January. If you had told investors in September last year that the gold price would close at a higher level than the previous year by the end of 2023, many people would have rejected this prediction. At that time, gold was trading at $1,640 following Russia’s invasion of Ukraine. Additionally, high interest rates were holding back the precious metal.
Interest rates have risen even higher this year. However, spot gold still managed to complete the last trading day of 2023 at $ 2,063.45. Many analysts predict hundreds more gains next year. Experienced trader CEO Technician states that gold has had a solid year.
“Ignore the narratives and fables!”
For gold predictions, Kevin Wadsworth of NorthStarCharts explains how far the precious metal has come. He also goes back to those heady days in September 2022 to consider why he was so confident in his bullish predictions. The analyst makes the following statement:
When gold was at $1,600, why was I so sure that we were more likely to go above $2,500 than we were to go to $1,500 or below! Ignore narratives and fairy tales! The US Dollar is not the strongest currency. The Swiss Franc has crushed it for over 50 years.
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