Analysts are revising up their forecasts for the price of gold after the precious metal recently came close to its all-time high of $2,072.50 U.S. per ounce in intraday trading.
Several analysts on Wall Street now say that gold in on track to rally to all-time highs in 2024 as interest rates are scaled back and ongoing fears of a recession push investors into the safe haven asset.
The spot price of gold came close to its record high of $2,072.5 U.S. in intraday trading on August 7 before pulling back to currently trade at $1,912.26 U.S. an ounce.
Gold has outperformed most other major asset classes over the past 12 months, remaining resilient against rising interest rates used to lower inflation.
Analysts, including at Livermore Partners, are now forecasting that the price of gold could reach $2,500 U.S. by the end of 2024, which would be 26% higher than current levels.
Gold tends to perform particularly well in periods of economic uncertainty such as recessions and stagflation. Gold is also used as a hedge against inflation.
United Overseas Bank in Singapore forecasts that gold will trade at $2,100 U.S. an ounce in the first half of 2024, noting that central bank purchases of gold have been strong this year.
So called BRICS countries, Brazil, Russia, India, China and South Africa, are also reportedly looking at moving away from the U.S. dollar to a new currency backed entirely by gold reserves.
