Gold reaches a record annual price in 2023. However, it has been a relatively slow start to the year. Despite this, analysts see potential for the precious metal to hit another record this year, according to the latest survey from the London Bullion Market Association.
According to the LBMA report, gold will remain above 2 thousand dollars in 2024
cryptokoin.comAs you follow from , gold reached record levels last year. However, the new year had a quiet start due to the influence of high interest rates. On the other hand, geopolitical risks continue to be supportive. Analysts from the London Bullion Market Association (LBMA) predict that the gold market will trade at an average price of $2,059 this year, an increase of 6.1% compared to $1,940.54 achieved last year. “When we compare analysts’ forecasts with actual prices, which averaged $2,040.18 in the first 11 days of January 2024, we can conclude that analysts do not expect runaway prices for gold this year,” the LBMA report says.
The survey shows that analysts are relatively divided on the main factors that will determine gold prices this year. According to the results, 25% of analysts expect US monetary policy to be the most important factor. Another 22% expect either central bank demand or geopolitical risks to drive prices.
The most bullish analyst predicts $2,400 for gold
Looking beyond the uniform average estimates, there is solid bullish sentiment among analysts. The report notes that all analysts surveyed expect gold prices to reach an all-time high this year. The most bullish analyst was Chantelle Schieven, research director at Capitalight Research. Schieven predicts that gold will rise to $2,400. Additionally, she predicts the year’s average will be around $2,170. For this prediction, the analyst makes the following statement:
Central banks, especially the Fed, are expected to start reducing interest rates in the coming months. Our expectation is that interest rates will decrease throughout 2024 and the US dollar will continue to lose value throughout 2024. Central banks’ demand for gold was at a record level in 2022-23. The days when gold was phased out of the international monetary system (1990-2008) are over! De-dollarization, aided by fear of Western financial sanctions, is driving central banks back to gold as the main reserve. Gold could literally soar at any time due to the impact of any number of crises over the next few years.
Most bearish analysts predict it will trade in a wide range
Meanwhile, the most pessimistic analyst is James Steele, HSBC’s chief precious metals analyst. Steele predicts gold will trade between $1,825 and $2,200. He also expects average prices to finish the year around $1,947.
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