Analysts Expect Gold Prices to Stay Above $2,000 in 2024

SEATTLE (Scrap Monster): The gold prices are expected to stay above $2,000 per ounce during the next year, mainly on account of economic, political and geopolitical risks around the world, said analysts.

According to Rania Gule, market analyst at XS.com, the prices of the yellow metal are likely to remain above $2,000 an ounce in the short term. The long-term bullish outlook on gold depends on several factors including anticipated rate cuts by the U.S. Federal Reserve. The economic, political and geopolitical risks are expected to remain high in 2024, thus lending support to gold as a safe haven asset.

It is projected that the Fed is likely to cut interest rates between 50 to 125 basis points in 2024.

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The positive price trends will be further supported by heightened central bank gold purchases. The uncertainty in future monetary policies due to upcoming U.S. presidential elections in late 2024 could trigger investments in gold, Gule added.

Meantime, Vikas Lakhwani, chief research officer, CPT Markets expects gold to trade between $1,975 to $2,000 an ounce during the first half of 2024 and between $2,050 to $2,100 in the second half of the year.

The gold market had witnessed a turbulent journey in 2023, with prices hitting above $2,100 per ounce before dipping back to levels of $2,050 per ounce.