The outlook for gold in 2024 seems promising, with various factors set to influence its trajectory. The direction of gold prices in the upcoming year will significantly hinge on the monetary policies implemented by major central banks, particularly the US Federal Reserve.
Several elements, such as the geopolitical landscape, trends in the dollar index, global economic growth, uncertainties arising from elections in major economies, and the ongoing gold purchases by central banks, will collectively mold the path of gold prices.
Continued Attraction of Gold in 2024
Following a strong performance with returns of approximately 15% in 2023, gold is poised to maintain its appeal in 2024, navigating through a complex macroeconomic environment. The US Federal Reserve has shifted its policy stance, signaling the conclusion of its aggressive rate-hike program. With inflation showing signs of considerable moderation, the central bank is anticipated to embark on a series of rate cuts in 2024, with three reductions expected throughout the year. Markets are already pricing in a potential rate cut as early as March 2024. This alteration could potentially exert downward pressure on the dollar index, leading to a further decrease in US bond yields, consequently bolstering the overall outlook for gold.
Gold Price Expectations in 2024
Although the trajectory for gold points upwards, intermittent corrective phases are predicted. Key support levels for gold are marked at Rs.59,500 and Rs.58,700 per 10 gm. Price declines might attract buying interest, potentially driving prices to new highs of around Rs.72,000 per 10 gm in the upcoming year.
Silver Price Projections for 2024
Silver's appeal remains robust, driven by strong industrial demand amid the global shift toward green energy. The silver market is anticipated to experience its third consecutive year in deficit. Trading between $20-$26 per ounce in 2023, a sustained surge beyond $26 per ounce or the Rs.78,500 per kg level could trigger significant momentum toward the $30 per ounce or Rs. 85,000-88,000 per kg range. Conversely, support levels are identified at Rs.70,000 per kg, followed by Rs.66,500 per kg.
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