Analysts at Canadian bank, TD Securities expect gold prices to remain elevated above the £1,658 ($2,100) marker throughout 2024 as the yellow metal gears up for its biggest and best year to date.
The bank’s new gold outlook for 2024 is overwhelmingly bullish on gold, with analysts expecting a strong push through the year. They say that the pressures gold has grappled with this year, in the form of a strong U.S. dollar and persistently high bond yields, shouldn’t be a factor over the next 12 months. With those constraints lifted, there’s nothing to stop gold prices from escalating consistently through the year – with the ignition point coming towards the end of Q1, when a recession will push the Federal Reserve towards rate cuts. Currently, it expects cuts of 250 base points.
The outlook notes that there is a huge potential for gold prices to move to the upside. Analysts say that the stage is set for both investor and central bank support, which will help to keep prices at higher levels.
“We see investor interest … once it becomes apparent the US central bank is ready to pivot to a less hawkish stance. This should trigger short covering and new long extensions, which have a lot of room to run,” they say.
“We believe the official sector will continue to be supportive in the months to come and will be a catalyst for sustained price increases next year. Physical purchases will be very important when the Fed pivots to a less restrictive policy.”
Don’t wait for those higher price levels to kick in. Buy gold now.
