U.S. bank JPMorgan Chase (JPM) is forecasting that the price of gold will ascend to record levels in 2024.
In a bullish outlook, JPMorgan says that investors would be smart to invest in gold ahead of a likely U.S. recession, predicting that the price of the precious metal will rise above $2,000 U.S. an ounce by year-end and hit record levels in 2024 as interest rates begin to fall.
Specifically, JPMorgan expects that declining interest rates in early 2024 will prove to be a major catalyst for gold, which should play out in the second quarter of next year.
The price of gold has increased 15% over the past 12 months, supported by signs that the U.S. Federal Reserve is nearing the end of its interest rate increases.
In May of this year, the price of gold approached a record high of $2,075.47 U.S. an ounce before retreating.
JPMorgan has placed a price target on gold of $2,175 U.S. an ounce by the fourth and final quarter of 2024 amid forecasts of a mild U.S. recession.
The stock of JPMorgan Chase has risen 38% in the last 12 months to $156.82 U.S. per share.
