Predictions Show Gold to Reach $2,150: When to Expect It

• Gold Price Surges, Predicted to Hit $2,150 in 2024
• Gold Forecast: 2024
• Economic Volatility and Gold

Gold Price Surges, Predicted to Hit $2,150 in 2024

Last week, the price of gold soared past the $2,071 per ounce mark, subsequently settling around $2,019 per ounce. This latest rise indicates a favorable turn for the precious metal following a somewhat stagnant 2023. Market forecasts anticipate further growth in 2024.

Prominent German bank, Commerzbank, prophesizes a bright future for gold, projecting prices to reach $2,150 per ounce in the second half of 2024. This optimistic prediction is driven by expectations of interest rate cuts by the U.S. Federal Reserve, which would enhance investor interest in non-yielding assets like gold.

Gold Forecast: 2024

The impending interest rate cuts favor gold, which is why we predict a further increase in price to $2,150 in the latter half of next year, state Commerzbank strategists. We also anticipate a resurgence of investment demand in line with the anticipated interest rate cuts by the Fed.

Despite the struggle to surpass the $1,980 boundary in recent weeks, last week's rally indicates a renewed momentum for the precious metal. Even though prices have retracted from initial peaks, gold appears to have established a solid base around the $2,000 mark.

Economic Volatility and Gold

The heightened market volatility underlines the persistent economic uncertainty plaguing financial markets. Yet, gold's successful rebound this week reestablishes its reputation as a safe haven during tumultuous periods.

In 2023, gold prices remained rather steady, fluctuating within the $1,780 to $2,050 range for the majority of the year. This followed a considerable sell-off in 2022 from the all-time highs of over $2,075 achieved in March of that year.

Historically, during periods of crisis or high anxiety, gold has rallied in price, as investors turn to perceived safe assets. Despite the ongoing risks in the global economy, gold's ability to triumph over adversity was prominently displayed this week.

Edited by Jonathan Stoker