Gold Price Set to Skyrocket in 2024 Post-Fed Meeting

• Gold Price Poised for New Heights in 2024
• Gold Price Recovers Ideal Stance for 2024 Rise
• Gold Poised for Record Levels due to Fed Cuts

Gold Price Poised for New Heights in 2024

In the wake of recent volatility, gold prices have bounced back, with predictions of reaching unprecedented levels in 2024 following the latest Federal Reserve meeting. The asset has now surpassed the $2030 mark, following a significant rally. In particular, the precious metal broke through the $2000 barrier after a prolonged period of fluctuating around the $1980 mark. This rise coincided with the Federal Reserve policy meeting where potential interest rate cuts throughout 2024 were hinted at. Once again, gold aligns with positive forecasts for the coming year.

Gold Price Recovers Ideal Stance for 2024 Rise

Earlier this month, gold traders were set abuzz when the asset set a new record high. Indeed, the metal traded at $2150 in a mini-boom that spanned a few days. Since then, there's been a discernible price correction with the asset struggling to move past the $1980 mark. However, the tide has turned in recent days, with heightened volatility due to uncertain economic happenings. Yet, the price of gold appears on course towards new peaks in 2024 following the most recent Federal Reserve meeting. Specifically, the authority chose to maintain interest rates unchanged for the third successive meeting. They also indicated potential cuts at some point next year.

Gold Poised for Record Levels due to Fed Cuts

MUFG Bank economists shared their views on the metal's prospects for 2024 with FX Street. They stated that higher rates are generally unfavorable for non-interest-bearing assets, which implies that the point at which rate cuts begin is crucial for gold's future. They observed that triple rate cuts could potentially skyrocket the asset to levels never reached before. They further stated that Gold- our most structurally bullish call for 2024- is poised to hit record levels thanks to a trifecta of Fed cuts. Such rate cuts could put the asset on an upward path. Moreover, their regularity could direct it towards levels that echo its previous all-time high attained in 2020. This could potentially result in the asset settling at even higher levels than those reached earlier this month.

Edited by Jonathan Stoker