The gold bulls reached a huge milestone last week, racing to a price high of £1,685 on 04 December. But that’s nothing like the last we’ll see of sky-high price increases according to the World Gold Council (WGC) which has forecast more record highs in 2024.
In its latest price forecast, the Council’s analysts say that they expect the Federal Reserve, central bank demand, geopolitical tensions, and the health of the U.S. economy to shape the yellow metal’s trajectory over the next 12 months.
It says the two most likely scenarios are either for the US to fall into recession or, for a period of low growth to continue through the year. “The increasing complexity of geopolitical risks and event risks makes it difficult to see how the U.S. will avoid a recession,” notes WGC analyst, Joseph Cavatoni.
“The case for central bank demand for gold is higher heading into 2024 than it was at the start of 2023,” he adds. This is especially promising for gold, with record levels of demand on the cards.
The WGC says that Federal Reserve rate cuts – which are widely expected to take place around Q2 or Q3 – will also be bullish for gold and will push the metal to the upside.
Don’t wait for those price increases to come into play. Buy gold now before we see a new price record set.
