2024 holds the promise of a remarkable chapter in the gold market, as we brace for a potentially historic year. Gold showcased resilience in 2023, notably during the Israel-Hamas conflict, triggering a resurgence in safe-haven demand. And now, an enthralling and potentially rewarding year awaits gold buyers, offering an alluring buying landscape for those attuned to the golden opportunities that await us.
The gold market is gearing up for a potentially record-breaking year in 2024. Investors are optimistic about reaching new highs, driven by several factors. In 2023, spot gold experienced a 13.7% annual rise, closing the year around $2,060 per ounce. The precious metal reached a record high of $2,141 on the 4th December, fuelled by expectations of a dovish turn in US interest rates, ongoing geopolitical risks, and increased central bank buying.
Despite facing volatility in 2023, with a dip to around $1,800 per ounce in October amid a regional banking crisis, gold rebounded, particularly during the Israel- Hamas conflict, sparking renewed safe- haven demand.
Investor confidence is evident in the popularity of the SPDR Gold Shares exchange-traded fund, which saw net inflows exceeding $1 billion in November. Forecasts for 2024 are optimistic, with a Reuters poll projecting an average price of $1,986.50. JP Morgan anticipates a "breakout rally" in mid-2024, targeting a peak of $2,300, while UBS forecasts a record of $2,150 by the end of 2024.
The World Gold Council's 2024 outlook suggests that a drop of 40-50 basis points in longer maturity yields, following rate cuts, could translate into a 4% gain for gold.
Economic projections, geopolitical uncertainties, and potential rate cuts contribute to positive sentiments.
The upcoming global elections in 2024, covering 76 countries and representing approximately 40% of global consumer gold demand, are expected to impact gold prices positively. Historical trends show that gold tends to gain momentum in the three months leading up to U.S. elections, with a 3.14% increase since 2000.
Additionally, factors such as the Middle East conflict and central bank purchases, particularly led by China, are predicted to enhance the appeal of safe-haven gold in 2024.
The stage is set for an exciting and potentially lucrative year for gold buyers, as the precious metal appears set to navigate uncertainties, political landscapes, and economic dynamics, presenting an intriguing buying landscape for those keen on the golden opportunities that lie ahead.
So, while the golden gates are open, speak to Rosland’s experts to chart your unique gold buying course.