21 March 2024
Gold’s remarkable rally has propelled its prices to record highs, with the potential to climb even higher, potentially reaching $2,300 per ounce in the latter half of 2024. This optimistic outlook is buoyed by expectations of rate cuts by the U.S. Federal Reserve, according to Aakash Doshi of Citi. Currently, gold is trading at $2,203. The precious metal often becomes more attractive when interest rates fall, as it competes favorably against fixed-income assets like bonds, which offer diminished returns in a low-rate environment. Moreover, central banks’ record bullion purchases and significant futures buying, as noted by Macquarie, have played a critical role in driving gold prices upward, suggesting that the rally is far from reaching its peak.