The gold price hit a record high in 2023, and investors are now watching keenly to see what 2024 may bring. Here’s what experts see coming in the New Year. The gold price reached a fresh all-time high in 2023, buoyed by financial and geopolitical instability.
The yellow metal neared a new record in the first half of the year as the banking crisis took hold, and it reached that milestone in H2, pushed upward by the conflict in the Middle East. However, interest rate hikes from the US Federal Reserve helped make interest-bearing assets more attractive to investors, tempering the draw of the precious metal. With uncertainty continuing at the end of the year, what are the factors that will affect gold in 2024?
Gold’s momentum continued on the back of Israel-Hamas worries and other factors, reaching record high of US$2,152.30 during intraday trading on December 3, 2023. “A yearly close above, US$2,100 would trigger a strong advance in 2024 with an initial 13 year cup-and-handle breakout target of US$2,500, and Fibonacci measurements being US$2,460 and US$3,300,” said David Erfle, of JuniorMinerJunky.
David Morgan, of the Morgan Report, said he is also bullish on gold heading into the New Year. “I still think gold is undervalued. Its hit (the US$2,000 mark) three times; it’s up to the fourth time. Usually on the fourth try through at a level it holds it.”
“2024 is the beginning of the next major leg up in precious metals,” he continued, speaking the day before gold broke US$2,100. US$2,072 is the previous high, and we’ll get above that, we’ll get US$2,100, US$2,200, US$2,300. Once we get into that modality, I don’t know if we’ll see above US$3,000, it depends on what happens with the rest of the economy. It depends if they pause and start lowering interest rates. If they do that it will put a boost to gold.”
