As we enter the second half of 2024, experts are increasingly optimistic about the future of gold prices. Analysts from Citi, TD Securities, and Bank of America are all pointing towards a bullish trend, driven by factors such as strong physical demand, central bank activities, and recent investment trends.
Key Factors Driving Gold Prices
Citi analysts have noted a slight decline in physical gold demand in the second quarter of 2024, but maintain that the underlying growth is strong. They predict spot prices to reach a record average range of $2,400-$2,600 per ounce by the end of the year.
Central bank purchases also play a significant role in the forecast. Citi projects a record 1,100 tons of central bank gold buying in 2024, with the potential to exceed 1,250 tons under bullish conditions.
Central Bank Activities
While the People's Bank of China paused its gold purchases in June, other central banks like the Reserve Bank of India and the National Bank of Poland continued their buying spree. This consistent demand is expected to support gold prices in the long run.
Future Projections and Outlook
Bank of America analysts predict that gold prices could surge to $3,000 per ounce within the next 12-18 months. Factors such as increased non-commercial demand and ongoing central bank purchases contribute to this bullish outlook.
Analysis and Breakdown
The forecast for gold prices in 2024 and beyond looks promising, with strong physical demand and central bank activities driving the market. Analysts believe that factors like sustained central bank buying, increased investment demand, and macroeconomic uncertainties will continue to support higher gold prices.
For investors, this means that gold could be a valuable asset in uncertain times, with the potential for significant gains in the near future. Keeping an eye on central bank activities and global economic trends could help investors make informed decisions about their gold investments.