Throughout 2024 thus far, Gold has performed immensely well. Since December of last year, the asset has been setting new all-time marks. Yet, it has also undergone a recovery over the past several days. However, the recent slump in gold prices doesn’t deter its $2,700 price target for 2024’s end.
Earlier this month, gold recorded a notable decline in value. Specifically, the asset is currently trading at just below the $2,300 mark that it had held onto for a few weeks. However, the overall drivers to gold’s success this year ensure that it can continue its climb.
Also Read: Gold Prices Fall Ahead of Wednesday’s FOMC Meeting
Gold Price Correction Won’t Change Upward Trajectory
Although we are only a few months into the year, gold and Bitcoin still prove to be the most prominent assets. Their increase in prominence may be for different reasons, but both provide optimism for future performance as the year continues and recent corrections have diminished some of their tremendous gains this year.
The metal may have seen its value dip in recent weeks, but the gold price is not yet poised to deter from our $2,700 target for the asset. Indeed, the Central Bank’s acquisition of the metal is continuing to drive expectations for its performance throughout this year.
Senior Director of Business Development at APMEX, Patrick Yip, told CBS News of the expectation that the asset will reach $2,600 by the end of the year. “There are a variety of factors in 2024 that will likely drive gold prices higher,” Yip said. “Geopolitical tensions, interest rate cuts, central bank buying,” and other factors influenced the expectation of continued gains.
Also Read: Historical Average Gold Price From 1849 to 2024
Along those lines, Greenlight Capital founder David Einhorn recently discussed the metal’s price increase with Market’s insider. He identified the Central Bank’s acquisition as the primary factor influencing its increasing value. Specifically, he noted Eastern interest as a major driving force.
“Perhaps the West is running out of gold it is willing to sell, while Eastern demand has remained strong enough to force the price higher,” Einhorn said. Indeed, this is a critical aspect of the increasing price.
If China and other Eastern countries continue to desire the metal, its value will certainly increase. Moreover, the ongoing interest rate development will be interesting to observe. If the Federal Reserve does cut rates, that may influence the price. However, the haven asset may not suffer, as it could reinforce greater prices amid increased beliefs in the inflation fight.