The World Gold Council expects prices for the precious metal to remain elevated in 2024, buoyed by a resilient global economy and continued purchases by central banks.
In its “Gold Outlook 2024” report, the World Gold Council noted that a “soft landing” for the U.S. economy looks increasingly likely, which would occur if the U.S. Federal Reserve brings inflation back to its 2% target without triggering a recession.
The Council, an industry body that represents gold mining companies, said that a soft landing for the U.S. will be positive for the global economy and help to further bolster the price of gold, which is already at record levels.
Additionally, central banks are expected to continue adding to their gold reserves in 2024, which could also boost the price over the coming year.
Central banks have been a major source of demand in the gold market over the last couple of years, with 2023 on track to be a record year. The World Gold Council said it expects this to continue into 2024.
In its report, the World Gold Council estimated that central bank demand added 10% or more to gold’s price in 2023 and noted that even if 2024 does not reach the same heights, above-trend buying should still boost prices going forward.
The price of gold hit a record in recent days after rallying in recent months after war broke out between Israel and Hamas.
The yellow metal’s price climbed above $2,100 U.S. per ounce for the first time, topping its previous all-time high reached in 2020 during the pandemic.
Gold’s price has since pulled back a bit and is currently trading near $2,050 U.S. per ounce.
