Bullion finished the year at $2,063 per ounce, surging more than 13% year-on-year in its first annual gain in three years, and hitting an all-time high of $2,110 per ounce earlier this month, according to RT.
Prices have been rallying for more than two months, driven by investor demand following the recession fears and expectations of interest rate cuts by the US Federal Reserve after an aggressive rate-hiking cycle that started in early 2022.
Moreover, heightened geopolitical tensions in the Middle East have boosted the safe-haven appeal of gold. All these factors and more are still expected to buoy gold prices in 2024.
“Following on from a surprisingly robust performance in 2023 we see further price gains in 2024, driven by a trifecta of momentum chasing hedge funds, central banks continuing to buy physical gold at a firm pace, and not least renewed demand from ETF investors,” Saxo Bank’s Ole Hansen told.
JPMorgan also predicts a “breakout rally” for gold in mid-2024, forecasting a peak of $2,300, when the US is expected to cut rates. UBS sees bullion hitting $2,200 by the end of next year on heightened geopolitical risks and inflation.