On Tuesday (December 12th) afternoon in the Asian market, gold remained in a period of adjustment at $1987, and institutional investors were addicted to profit selling. But analysts predict that once the adjustment period and profit booking end, gold prices are expected to soar again. Bloomberg senior commodity strategist Mike McGlone predicts that gold prices are expected to rise by 50% in 2024 and reach a historic high of $3000 by the end of the year.
Gold prices hit a new high of $2100 in early December, but fell below the $2000 mark on Monday. Due to investors waiting for US Consumer Price Index (CPI) data, gold prices traded around $1987. Currently, all traders are focused on the US inflation report and the Federal Open Market Committee (FOMC) meeting, which may determine the next direction of the market.
Capex's major gold and commodity analysts predict that gold prices may return to $2100 levels in the second quarter of 2024. Gold prices rose 20% in the third and fourth quarters of 2023 and are currently undergoing adjustments. Institutional investors are addicted to profit booking, and large-scale selling reflects negative impacts on the charts.
However, once the adjustment period and profit booking end, gold prices are expected to soar again. According to recent price forecasts, gold prices may reach $2100 in the second quarter of next year.
In addition, Mike McGlone predicts that gold prices may rise by 50% next year. He said that gold prices may steadily climb and reach a historic high of $3000 by the end of 2024.
At the beginning of the week, he tweeted, "Has the strong November US employment report changed this trajectory? The rise in gold, the decline in crude oil, the economic recession, and the possibility of the US falling into a delayed economic recession next year, global trends and central banks unwilling to hastily provide liquidity as in the past. The patterns of gold rise and crude oil decline indicate a tendency towards a global economic recession."
McGlone explained that gold prices are currently consolidating and may start rising in 2024 next year. The weakening of the US dollar and the inflow of funds into the commodity market will be the key reasons for the spectacular performance of gold prices. This development may weaken global stock markets and make gold a safe haven for institutional investors.
The reports of the upcoming economic recession in 2024 have also stimulated a significant influx of funds into gold. Financial institutions are seeking to protect their funds, and gold is the best choice to resist market downturns. The fate of precious metals may develop in a new direction next year.
Watcher Guru pointed out that therefore, all indicators indicate that gold in 2024 may overcome all negative expectations and possibilities and usher in its best year.
"If the US market falls into a recession next year, gold will become the preferred investment for traders. Gold is seen as a safe haven to resist market adjustments and also serves as a hedge against inflation," the report concludes.
