Category: Gold News

Gold Price on Track for $2,300 in 2024

By Published On: March 17, 20242.3 min readViews: 1700 Comments on Gold Price on Track for $2,300 in 2024

Despite the ongoing questions facing the Federal Reserve regarding interest rate cuts, Goldman Sachs has revised its gold price forecast, stating that the metal is on track for $2,300 value in 2024. Speaking to Reuters, the investment firm noted its most recent revision is the third increase for the third time since the start of the year.

Indeed, the revision took place as the asset surpassed an all-time high in March, several months after reaching a record high in December of last year. Previously, Goldman Sachs predicted Gold to end the year at $2,090, then $2,180. However, they have now noted expectations for that to increase, as the metal has already exceeded both figures thus far.

Gold Price on Track for ,300 in 2024
Source: Mint

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Goldman Sachs Expects Gold to Surge in 2024 Despite Interest Rate Uncertainty

Throughout 2023, the Federal Reserve embraced a fiscal tightening campaign to combat inflation. That practice had certainly affected investment activity and had worked to help certain haven assets. Among those was gold, which ended the year reaching a new landmark value.

However, the market now anxiously awaits interest rate cuts, leading to a lull that took place at the start of 2024. That didn’t last long, as the metal ascended to a brand-new all-time mark in March. Now, that performance has influenced Goldman Sachs’s forecast, as they now project the gold price to reach $2,300 in 2024.

“We increase our average gold price forecast for 2024 from $2,090/toz to $2,180/toz, targeting a move to $2,300/toz by year-end,” the firm said in a note to Reuters. Moreover, speaking to the publication, Everett Miillman, chief market analyst at Gainsville Coins discussed the metal’s current predicament on the market amid inflation and interest rate concerns.

Gold Price Forecasted To Hit $2,100 in 2024; Here's WhyGold Price Forecasted To Hit $2,100 in 2024; Here's Why

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“Gold has already priced in whatever positive boost it would get from expectations that interest rates are going down… if inflation starts to kick higher again, it means that policymakers are going to have to keep monetary policy more restrictive for longer,” Millman said.

“Although gold does not particularly like a high-interest rate environment if the reason for interest rates to stay that high is because inflation is running hot.. that naturally means people will again turn to gold,” Millman concluded.

March will prove to be a vitally important date for gold investors. The inflation data should provide greater information on where the discussion is headed. More importantly, Fed chair Jerome Powell’s direction should be gleaned from his statement following the Central Bank’s March decision regarding interest rate cuts.

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