Why gold will glitter in 2024

3.26.24 - Why gold will glitter in 2024

Gold last traded at $2,175 an ounce. Silver at $24.42 an ounce.

Three factors why gold will glitter in 2024 -The Hindu Business Line

Three factors - the US Fed's likely move to cut interest rates, a weaker dollar and geopolitical tension - will likely keep gold prices elevated in 2024 with research agencies raising their price forecast for the precious metal.

JP Morgan has picked gold as the top pick among commodities this year and has forecast its prices touching $2,500 an ounce. US research agency BMI, a unit of Fitch Solutions, sees gold hovering in the range of $1,950-2,250 in the coming month. It has raised the average price of the yellow metal to $2,100 this year from $1,950 it forecast earlier.

"Gold is set to rise even further in the coming months of 2024, especially when the Fed actually starts to cut," said Sabrin Chowdhury, Head of Commodities, BMI.

"For the second consecutive year, the only structural bullish call we hold is for gold and silver," said JP Morgan in its outlook for the precious metal.

"...we are bullish towards gold prices in the coming months, strong downside risks are stemming from still strong US economic data, which could result in fewer rate cuts by the US Fed than we currently expect," said BMI in its commentary.