Despite the asset’s ascension to a new all-time high, some investors have noted concern regarding the Gold price and a potential crash that could be in store for 2024. The metal has seen its price corrected since reaching $2,152.30 on Monday. Subsequently, the coming year could be massively important in establishing its standing from an investment point of view.
Since reaching that all-time high, a massive correction has taken place. Currently, the gold price is at $2029.30. but up more than 10% over the last 24 hours. However, some have predicted that a correction could preceed a downfall of epic proportions.
Could the Gold Price be Set to Crash in 2024?
For some investment assets, volatility is an inherent part of the process. Indeed, that is no more evident than in the discourse surrounding the price of gold. Following its eventual surge to a new all-time high, the precious metal has corrected. Subsequently, many are calling for a massive crash to come over next year.
However, the prediction of the gold price experiencing a crash in 2024 does not have the strongest of evidence. Specifically, because the price’s downfall would have to be connected to a massive economic turn for the United States throughout next year. Although an ascension tends to be tied to negative economic realities, a positive turn that crashes gold’s price is less likely.
Gold’s price has been up a remarkable 14% year on date, and it has led to a lot of optimism, and speculation as we approach the final month of 2023. However, the data suggests that a continued uptrend is far more realistic than a crash. Even if the price does retreat, it should not descend to 2022 lows.
Most of the gold price gains have come in October, with the metal trading sideways for the majority of the year. Subsequently, the rally was closely connected to anticipation of Federal Reserve action. As the anticipation of interest rate cuts for the first quarter of 2024 come into view, the price could be impacted.
ING currently forecasts interest rate cuts throughout 2024. Specifically, they note 150 basis points to be cut in the coming year. If that does come to fruition, the price is certainly expected to positively react. Specifically, inflation fears would drive the gold price up, with many using the precious metal as a defense.