The Dutch multinational bank ING has confirmed that it is bullish on gold for 2024 and beyond in its latest precious metals briefing, issued earlier this week. The bank’s price trajectory sees a rally igniting in the early stages of the year, with the bulls set to race past £1,646 ($2,000) once again.
The bank says the current price pressures on gold – created by the Federal Reserve’s hawkish narrative and suggestion that rates may stay higher for longer than previously thought – will begin to abate as the new year gets underway.
Commodity strategist Ewa Manthey believes that the impact of months of successive rate increases will come home to roost in the early part of 2024, with households and businesses squeezed. “Our US economist believes that the Fed is done hiking rates with cuts starting from spring 2024 as challenges continue to mount,” she said. “Real household disposable income is slowing, student loan repayments are due to restart, credit availability is drying up and pandemic-era accrued savings have been exhausted by many households.”
This sets the stage for rate cuts – and crucially, gives the gold bulls increased scope to manoeuvre. In this environment, gold prices should begin to rise exponentially, initially hitting £1,646 ($2,000) and then ascending higher still.
Manthey adds, “We expect prices to move higher again in the first quarter of 2024 to average $1,950/oz on the assumption that the Fed will start cutting rates in the first quarter of next year, the dollar weakens, safe-haven demand picks up amid global economic uncertainty and central bank buying remains at high levels.”
With a window of opportunity open right now, this outlook creates a compelling reason to think strategically and buy while prices favour savvy investors. The yellow metal is currently trading around £1,490 ($1,819). Don’t sit back and wait for prices to increase. Maximise this opportunity and set yourself up for success in 2024. Buy gold now.
