Forecast: Gold Price to Exceed Record Highs by 2024

• Gold Price Poised to Surpass Record Highs in 2024
• Anticipation of New Highs in 2024
• Volatility in Gold Prices

Gold Price Poised to Surpass Record Highs in 2024

With a sustained rally beyond the $2,000 mark, the price of gold is projected to reach new record highs by 2024. This precious metal is predicted to equal the peaks observed in 2020, having already touched $2,038.45 this week. The possibility of new highs is not off the table as we bid farewell to 2023.

Gold has historically been seen as a safeguard against inflationary fears. With the continued evolution of the United States' economic climate, investment interest in gold has seen a significant increase. This growth is expected to persist well into the following year.

Anticipation of New Highs in 2024

The previous year has witnessed the frail US economy striving to combat inflation. The Federal Reserve has initiated a tightening campaign, raising interest rates consistently for a year. This activity had a substantial influence on various markets, with gold undoubtedly leading the pack.

Considering its current performance, the price of gold could potentially surpass record highs in 2024. The precious metal might be on track to its best performance since 2020, especially with inflation still lingering at 2%, much above the Federal Reserve's target.

Volatility in Gold Prices

Nonetheless, the gold price remains relatively unstable. In September, prices dropped below $1,850, only to rise above $2,000 in November. Despite this, WisdomTree predicts that the asset might exceed its all-time high if the economic situation deteriorates. They also forecast an inflation rate of 2.60% in Q3 of 2024, which could drive demand and push up the price of the asset.

According to Nitesh Shah, the head of commodities and macroeconomic research at WisdomTree, In scenarios where economic conditions deteriorate faster and there's a greater demand for defensive assets, we might see gold prices rising even more.

The economic state of the United States, along with geopolitical tensions, could result in a favorable performance for gold. Despite potential adverse impacts on the overall economy, the prominence of gold in many investment portfolios means it stands to benefit significantly.

Edited by Jonathan Stoker