There can be no doubt as to the appeal of gold in 2024, with the bulls already smashing two price records before the end of the first quarter. However, the precious metal is setting up to be in even greater demand later this summer, according to Harry Mamaysky, a partner at investment firm QuantStreet Capital and Colombia Business School professor.
Explaining the yellow metal’s enduring appeal in a new analysis, Mamaysky underlined that gold continues to be supported by a wide range of factors which make it a solid, stable store of wealth. “Gold is a store of value that has been a good inflation hedge in the long run. Gold is in limited supply (barring major advances in space exploration).
As with other industry experts, the professor expects gold prices to skyrocket when the Federal Reserve begins to cut rates later in the summer. His projections indicate that the impact will be long-term, with prices then raising for a significant period thereafter, based on an analysis of pricing behaviour in the aftermath of other periods of policy easing.
“The likely start of a Fed easing cycle later in 2024 may serve as a catalyst for the price of gold,” he commented. “As of the time of this writing, Fed funds futures are forecasting a start to the Fed easing cycle around July of 2024. Should history repeat itself, gold will do very well over the subsequent few years.”
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