Gold
Bid : 3,079.69/oz
Ask : 3,088.93/oz
Silver
Bid : 34.56/oz
Ask: 34.66/oz
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Bid: 1,369.11/oz
Ask : 1,404.71/oz
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Gold
Bid : 3,079.69/oz
Ask : 3,088.93/oz
Silver
Bid : 34.56/oz
Ask: 34.66/oz
Platinum
Bid: 1,369.11/oz
Ask : 1,404.71/oz
Refresh in 00:00

Gold Prices Forecasts for 2024

January 1, 2024

Gold prices faced a notable setback last week as they experienced a decline of over 3.3%. The Comex front month closed at around $2,004 an ounce, while the continuous contract closed at $2,020. This downward trend comes despite weaker US bond yields and the US dollar. Although gold has seen a 10% increase for the year, it is expected to remain at that level by the end of the year.

Looking ahead to 2024, the World Gold Council (WGC) has identified several factors that may influence gold prices. These factors include the health of the global and US economies, demand from two major markets – China and India, the attractiveness of Exchange Traded Funds, US bond yields, the value of the US dollar, and central bank buying.

The WGC predicts that central bank buying will continue to play a significant role in supporting gold prices in 2024. This expectation is based on the robust central bank purchases observed in 2022 and 2023. In fact, WGC Chief Strategist John Reade expressed surprise at the substantial increase in central bank purchases during those years. The WGC suggests that central bank demand contributed 10% or more to gold’s performance in 2023.

While a “soft landing” is anticipated for the US economy, historical trends indicate that such environments have not favoured gold. However, geopolitical tensions and continued central bank buying could potentially support gold prices in the face of this uncertainty.

As we move into 2024, there are still several uncertainties that may impact gold prices. Investors will closely watch the US November Consumer Price Index data and the upcoming last meeting of 2023 by the Federal Reserve. The Fed’s meeting will reveal interest rate expectations for the coming year, providing further insights into the economic landscape.

Additionally, major elections taking place globally may influence investors to seek gold as a preferred option for portfolio hedges in 2024, according to the World Gold Council. The potential for geopolitical shifts and their impact on the global economy could drive investors towards the perceived stability of gold.

In conclusion, gold prices experienced a significant decline of over 3.3% last week, closing at approximately $2,004 an ounce for the Comex front month and $2,020 for the continuous contract close. Despite weaker US bond yields and the US dollar, gold has been on a downward trend, with a 10% increase for the year but expected to remain at that level by year-end.

The World Gold Council predicts that several factors, including the health of the global and US economies, demand from China and India, the attractiveness of Exchange Traded Funds, US bond yields, the value of the US dollar, and central bank buying, will impact gold prices in 2024. Central bank buying is expected to remain robust in 2024, providing an extra boost to gold prices. While a “soft landing” is anticipated for the US economy, historical trends suggest it may not favor gold. However, geopolitical tensions and continued central bank buying could potentially support gold prices. 

Uncertainties remain, including the US November Consumer Price Index data and the Fed’s last meeting of 2023, which will reveal interest rate expectations for the coming year. Major elections globally may lead investors to seek gold as a preferred option for portfolio hedges in 2024, according to the World Gold Council.

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