Gold Price Forecast: Average $2,365, Year-End $2,600

Gold Price Forecast: Average $2,365, Year-End $2,600

Key Points:

  • Gold Price Forecast: Average price of $2,365 in 2024, potential high of $2,600.
  • Long-term Projections: Revised upwards to $1,950 in real terms and $2,300 in nominal terms.
  • Silver Price Forecast: Average price of $30.5 in 2024, potential year-end price of $36.

The gold price forecast for 2024 presents a promising scenario for investors. According to the latest projections, experts expect the average price of gold to be around $2,365. By the end of the year, gold prices could reach as high as $2,600. Looking further ahead, a two-year projection anticipates prices exceeding $2,800. Despite these optimistic short-term forecasts, the long-term real terms forecast stands at $1,950, revised upwards from a previous $1,750. In nominal terms, experts expect long-term prices to stabilize around $2,300.

Strong Structural Support Backs Gold Price Surge

Several factors underpin the positive outlook for gold prices. Structural support for gold remains strong, bolstered by resilient demand across various sectors. Official sector purchases have substantially contributed significantly to the market’s stability. Physical demand for gold has sustained momentum, ensuring a consistent base level of support. Furthermore, the trading range for gold appears to have shifted higher, reflecting an overall bullish sentiment in the market. These elements collectively provide a solid foundation for the projected price increases.

Economic Instability Fuels Bullish Gold Sentiment

Investor sentiment towards gold remains bullish, anchored by ongoing macroeconomic uncertainties and persistent geopolitical risks. The appeal of gold as a safe-haven asset continues to attract investors, especially in times of economic instability. The second half of 2024 promises to be particularly volatile, with significant events like the US elections on the horizon. These events and rising concerns about the US fiscal deficit could further enhance gold’s attractiveness as a hedge against uncertainty.

Event Risks and Fiscal Concerns as Catalysts for Gold Price

The second half of 2024 holds a lot of uncertainty, particularly with the significant risk posed by the upcoming US elections. Rising concerns about the US fiscal deficit also contribute to the potential for market volatility. These factors are considered potential catalysts that could drive gold prices higher. As highlighted by market observers, “The second half of 2024 holds a lot of uncertainty, especially given the upcoming US elections. Event risks and the rising concerns about the US fiscal deficit could act as upside catalysts later in the year.”

Silver Prices to Average $30.5, Year-End at $36 in 2024

Silver is also expected to perform well in 2024, in addition to gold. The forecast for silver prices anticipates an average price of $30.5, with an expected year-end price of $36. Silver is projected to outperform gold, presenting another attractive opportunity for investors. This outperformance expectation further diversifies the precious metals market outlook, providing additional avenues for investment.