Gold Prices To Reach New Highs in 2024 as Central Banks Buy 387 Tonnes

Vinod Dsouza
gold us dollar prices xau usd
Source: ShutterStock

World Gold Council reported that Central Banks around the globe purchased 387 tonnes of gold between January to June 2023. The overall worth of the 387 tonnes of gold currently stands at a staggering $22.6 billion. The WGC is yet to provide data on the Central Banks’ gold accumulation spree for the rest of the year in 2023. The numbers that could be out will be more or less similar as Central Banks continue to purchase gold throughout the year.

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The World Gold Council also reported that Central Banks will not stop accumulating tonnes of gold in 2024. Geopolitical tensions are the key factor that’s driving Central Banks to hold gold and not the US dollar in reserves. The uncontrolled $34 trillion debt is what’s making Central Banks reduce accumulating the US dollar.

Gold is seen as an alternative to the US dollar and remains a safe investment during global turmoil. The Russia and Ukraine war, the Israel and Palestine conflict, and tensions in the Red Sea have led to global market instability. Therefore, gold accumulation has hit record highs and Central Banks are now the top buyers of the precious metal.

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Gold Forecasted To Reach New Highs in 2024 Due To Central Banks Accumulation

Gold (XAU/USD) Remain Rangebound, Stays Above $2,030
Source: Watcher Guru

The prices of gold could sustainably scale up as Central Banks could accumulate more in reserves this year in 2024. The XAU/USD is currently around the $2,025 mark and could end the year reaching a new high of $2,200. The steady accumulation by Central Banks keeps gold prices afloat and gives it a boost in the arm despite uncertainty.

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“Our expectations are that Central Bank purchases will continue next year (2024) on a net basis. That’s pretty much the case since the global financial crisis,” said WGC’s report. In conclusion, gold prices are forecasted to be bullish as commodity investors, retail holders, and central banks are going all in on the precious metal.