Gold is brimming with energy and momentum as we head into the last few days of 2023 – but don’t expect it to burn out anytime soon. We’re on course for yet another record high to be set in the New Year, according to a new outlook from strategists.
George Milling-Stanley, from State Street Global Advisors, says that it’s difficult to put a cap on how high gold prices could go in 2024. “When gold finds its momentum, there is no telling how high prices can go. There is a very good chance we will see all-time highs next year.”
The gold expert forecasts difficult economic conditions in the months ahead, with a recession and persistent inflation all creating a favourable environment for gold prices. “My sense is that we are going to get a period of below-trend growth and possibly a recession,” he said. “But it is going to be accompanied by probably still sticky inflation on the Fed’s preferred measure. This will be a good environment for gold. If we get a major recession, then our bullish case will be in play.”
The outlook’s forecast gives a range of £1,580 to £1,879 for gold in 2024, with gold likely to get additional traction from continuing central bank demand. “Central banks have been very consistent for 14 years now, buying anywhere between 15% and 20% percent of annual demand,” he added. “That has been tremendous support whenever gold has shown signs of weakness. I expect that trend to remain in place for many years still.”
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