With strong market demand, the gold price has been predicted to reach $2,600 in 2024. Indeed, the metal asset has experienced stability amid uncertain times in the last weeks, especially as the Federal Reserve has adhered to its wait-and-see approach to interest rate cuts.
Yet, the current sustaining levels for gold may set it up to surge in the coming months. Currently, gold is trading at $2,135 and down only 0.26% over the last 24 hours. Comparatively, the digital asset market has experienced a stark downturn in that same time frame, with Bitcoin dropping almost 3%.
Also Read: Goldman Sachs: Gold Price on Track for $2,300 in 2024
Gold Price in Line To Reach New Heights This Year
As a haven asset, gold has a rather interesting relationship with overall economic development as an investment option. Heading into 2024, there were high hopes for the asset’s price performance. That belief was all but certified in December of last year when the asset reached an all-time high.
That figure has already been surpassed this month, reaching $2,195 on March 8th. Still, there are high hopes for the asset’s performance, as the gold price has been predicted to reach $2,600 in 2024. Specifically, the managing director at Midas Touch Consulting, Florian Grummes, told Kitco News the expectation is for the metal to surge in value.
“Chian dominates the physical gold market through strong demand from the Central Bank and the buying frenzy at the beginning of the Year of the Dragon,” Grummes said. “Through arbitrage trading, the paper gold market in the West is increasingly under pressure.”
Also Read: Gold Prices Breach $2,170; Why Is It Up Today?
Thereafter, he stated, “The macroeconomic environment remains highly favorable for the gold price. Ultimately, Grummes predicts the price of the asset to reach $2,535 during the summer months. Moreover, Carley Garner, DeCarley Trading co-founder, said that both weekly and monthly charts display a gold price “somewhere around $2,600, maybe even a little more than that.”
How Will Interest Rates Affect Gold Price?
For the United States, the Federal Reserve interest rate decision will have massive implications on the Gold price. Although many have assumed cuts would be the only path to a surge in price, that may not be the case. Indeed, Commerzbank analysts told FX Street that unchanged rates could help the metal.
Specifically, they said interest rates left alone would “probably be a positive for gold, as some market participants are likely to expect an upward revision of interest rate expectations following the US inflation data.” Currently, data shows a gold price of $2,600 in 2024 is not out of the question.