Gold Bullion Seen Surging to $2,500, CNBC Reports
Will Gold Rise to $2500 in 2024?
Gold traders forecast the price of gold will reach $2,100 and even $2,500 in 2024 as long as recessionary fears persist, according to CNBC.
Analysts predict the prospect of declining interest rates, central bank purchases, and rising demand for gold jewelry are all driving up the price of gold, which is currently trading at $1,913.83 an ounce, in addition to global economic uncertainty.
According to a recent research note by Bart Melek, managing director and global head of commodity strategy at TD Securities, gold has outperformed the majority of major asset classes over the past 12 months.
Livermore Partners’ founder David Neuhauser stated that his goal is to reach $2,500 by the end of 2024, a 26% increase from current levels.
I see gold breaking out and reaching new highs in 2024, [which is] when I see this happening, and a lot of this has to do with the fact that recessionary forces may take hold beginning later this year and gain steam in 2024, according to Neuhauser.
As people seek out safe havens during uncertain times, gold performs well. It also serves as an inflation hedge.
Furthermore, when interest rates decline—generally considered to be at their peak—investors tend to switch from alternative investments like bonds to gold. When interest rates are declining.
Gold is disconnected from some of the moves in Treasuries and real yields, but could get a boost from a major risk-off event that would make it clear that central banks aren’t in control as much as people think, said Parrilla, who has worked at Goldman Sachs Group Inc. and Bank of America Merrill Lynch and has 25 year’s experience trading precious metals.
Neuhauser predicts that inflation will continue to rise globally between 3% and 5%, resulting in stagflation that will last for a few years.
In agreement with this prediction was Randy Smallwood, CEO of Wheaton Precious Metals: “I’m pretty confident that within a couple of years, we will see $2,500 gold.” “Gold would benefit from any type of recessionary move.”
Gold moving “above $2,100 in late 2023, early 2024”
As a trading level, “I do see gold moving above $2,100 in late 2023, early 2024,” Melek said. “I think the Fed will shift away from its current restrictive stance on policy. This, in my opinion, will occur prior to the target inflation rate of 2%.
Chinese and Indian consumers are purchasing more actual gold jewelry, according to Heng Koon How, head of markets strategy at UOB, as their economies have stabilized and retail spending has increased.
Heng also noted that central banks have been “consistently strong” in their purchases of gold bullion.
According to Nicky Shiels, head of metals strategy at the precious metals firm MKS PAMP, emerging market central banks continue to move away from the dollar and use gold as a backup currency in case of additional sanctions.
