Geopolitics during the year 2023 was the one that made the most significant impact on the price of gold. During the first half of the year gold was testing the $2K psychological level, but without too much success for the final breakthrough. However, a new Middle East conflict which arose in 2023, global recessionary fears, and a few banking crises which occurred during 2023 have finally pushed the price of gold above the psychological $2K levels as of the end of the year. The price of gold reached its highest yearly level in December, reaching $2.1K.
Due to reasons noted above, the price of gold was losing correlation with USD on many occasions. What we have learnt from 2023 is that gold continues to be perceived as a safe-haven for investors in order to sustain the value of their assets in crisis situations.
What can we expect from gold in 2024? Current complexity of the economic, monetary and geopolitical environment puts a lot of challenges on the price of gold. Geopolitical tensions might continue through 2024 which would put the price of gold under pressure. Also, potential decrease of Fed's interest rates might additionally support the price of gold. Here we should also not forget that there is currently ongoing increased demand for gold purchases from central bankers around the world, including China as the most significant gold holder.
At the beginning of 2024 analysts are in agreement that the price of gold can sustain current $2K levels. However, only a few of them are mentioning a new highs for the price of gold in 2024, mentioning the level of $2.3K. Considering the reasons behind the push of gold to the higher grounds, let’s just hope that it will hold around the $2K levels.
Important news to watch during the week ahead are:
USD: Consumer Price Index for December, Initial Jobless Claims, Producer Price Index for December
Due to reasons noted above, the price of gold was losing correlation with USD on many occasions. What we have learnt from 2023 is that gold continues to be perceived as a safe-haven for investors in order to sustain the value of their assets in crisis situations.
What can we expect from gold in 2024? Current complexity of the economic, monetary and geopolitical environment puts a lot of challenges on the price of gold. Geopolitical tensions might continue through 2024 which would put the price of gold under pressure. Also, potential decrease of Fed's interest rates might additionally support the price of gold. Here we should also not forget that there is currently ongoing increased demand for gold purchases from central bankers around the world, including China as the most significant gold holder.
At the beginning of 2024 analysts are in agreement that the price of gold can sustain current $2K levels. However, only a few of them are mentioning a new highs for the price of gold in 2024, mentioning the level of $2.3K. Considering the reasons behind the push of gold to the higher grounds, let’s just hope that it will hold around the $2K levels.
Important news to watch during the week ahead are:
USD: Consumer Price Index for December, Initial Jobless Claims, Producer Price Index for December
