Gold prices have enjoyed a sustained run of form over the last few weeks, with gains in excess of £130 ($160) in the aftermath of war breaking out in the Middle East. However, the precious metal is still undervalued despite this rally says investment strategist Philip Petursson, who attributes gold’s current price levels to a stronger dollar. However, the greenback’s strength won’t continue indefinitely and as it falls back, gold prices will rise even higher.
“Gold has been weighed down by the strength and the U.S. dollar for most of this year,” the Chief Investment Strategist at IG Wealth Management explained. “They tend to be inversely correlated, so as U.S. dollar strengthens gold tends to weaken a little bit. Now, if we think that the U.S. dollar is going to soften from here, and I think that is our base case going into 2024, that’s positive for gold.”
Petursson expects gold prices to top £1,964 ($2,400) in 2024 as the yellow metal’s rally gathers pace. There’s no time to waste. Buy now.
