Gold prices started the new year calmly as they consolidated above $2,000. However, one investment firm expects both gold and silver to enter a long-term bull market. Thus, he predicts that the shiny metal will hit all-time highs. Moreover, the investment company expects a better performance from silver.
With the Fed’s change of direction, gold prices will exceed $ 2,400!
In their recently published 2024 outlook, AuAg Funds analysts predict that gold prices will see a 20% rise this year. Thus, analysts expect the gold market to exceed $2,400. The Sweden-based investment company also explains its views on the catalyst that will drive the rally in precious metals. Analysts say that catalyst will be a shift in the Federal Reserve’s monetary policy. In this context, analysts include the following assessment in the report:
We believe that central banks will move away from interest rate increases and adopt a more supportive policy stance in 2024, which will cause a significant increase in gold prices in the foreseeable future.
The firm predicts that the US dollar will weaken as the Fed leads the world in cutting interest rates this year. He predicts that this will create another tailwind for gold prices.
AuAg Funds expects outperformance from silver!
However, cryptokoin.comAs you follow from , gold has had difficulty in recent days. Because markets started to lower their expectations for a possible interest rate cut in March. Therefore, gold prices tested the support just above $2,000. So far, gold has lost about 3% of its value since the beginning of the new year. Even though the fund is bullish on gold, it expects silver to perform better this year. Analysts make the following statement on this subject:
In this rising bull market, which is expected to last for many years, we predict that the gold-silver ratio will fall below 30:1. We are also setting an initial target of 70:1 for 2024. If gold gains 20% value, it will close the year at $2,475. Therefore, with a gold-silver ratio of 70:1, silver will close at $35. This corresponds to a return of 48%.
We also need to pay attention to the mining sector!
While gold and silver are expected to rise, the company says investors should also pay attention to the mining sector. Analysts make the following statement:
Gold miners have historically been undervalued relative to gold. This trend is likely to reverse and be surpassed during the upcoming gold bull market. Gold miners are also historically undervalued relative to the S&P 500. This offers a unique and attractive entry point.
Analysts state that mining companies have healthy balance sheets as high gold prices increase margins. AuAg expects smaller and mid-cap producers to outperform mega-cap companies in the current environment
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