Gold prices rallied last week, surpassing $2,071 per ounce. However, the price has settled at around $2,019 per ounce at the time of writing. This latest uptick signals a positive shift for the precious metal after a lackluster 2023, with market analysts forecasting further growth on the horizon for 2024.
According to leading German bank Commerzbank, gold’s prospects look increasingly bright, with prices predicted to reach $2,150 per ounce in the second half of 2024. Driving this optimistic forecast are expectations of interest rate cuts by the U.S. Federal Reserve, which would boost investor appetite for non-yielding assets like gold.
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Gold forecast to reach $2150 in 2024
“The upcoming interest rate cuts speak in favor of gold, which is why we foresee a further price increase to $2,150 in the second half of next year,” said Commerzbank strategists. “Investment demand is also likely to pick up again with the interest rate cuts by the Fed that are on the horizon and should materialize.”
After struggling to push beyond the $1,980 threshold in recent weeks, last week’s rally signals renewed momentum for the precious metal. While prices pulled back from early highs, gold seems to have found firmer footing at present levels around $2,000.
The heightened volatility points to the ongoing economic uncertainty that has plagued financial markets. Yet gold’s ability to regain its shine this week reaffirms its status as a haven in turbulent times.
In 2023, gold prices traded broadly sideways, hovering within a relatively narrow $1,780 to $2,050 range for most of the year. This came after a significant sell-off in 2022 from all-time highs above $2,075 reached in March of that year.
In times of crisis or fear, gold has historically rallied in price as investors flock to perceived safe assets. While risks still run high in the global economy, the asset’s knack for overcoming adversity was on full display this week.