Gold prices could hit all-time highs next year on fears of a global recession and thanks to the end of a cycle of interest rate hikes by the world’s key central banks, analysts predict, with the most radical estimates calling for quotes to rise to $2500 an ounce.
“My target is $2500 by the end of 2024. This is largely due to the fact that recessionary factors could intensify towards the end of the year and gain strength in 2024,” wrote David Neuhauser, founder of Livermore Partners. – “I think gold will renew highs next year and go even higher.
“I’m pretty confident we’ll see gold at $2500 in the next couple years,” said Wheaton Precious Metals head Randy Smallwood, also pointing to recessionary signals as a positive for the precious metal.
The current quote record was set on August 7, 2020 at $2072.5 per troy ounce.
“I think gold will exceed the $2100 mark in late 2023 or early 2024,” said TD Securities managing director Bart Melek, adding that his forecast is based on the assumption that the Fed will take a pause in raising rates.
Gold has performed better than most other asset classes over the past 12 months, Melek pointed out. In his opinion, this shows the resilience of the precious metal in the face of rising interest rates and its value as a reliable asset that provides protection against inflation.
Quotes of December gold contracts on New York’s Comex exchange were up 0.1% to $1951 per troy ounce by 3:05 p.m. Q3:05 p.m. Friday.
