Gold Price Forecast: XAU/USD set to hit record levels – MUFG

FXStreet Insights Team FXStreet

Gold prices climbed to a two-week high earlier this week. Economists at MUFG Bank analyze the yellow metal’s outlook.

Gold demand hit a record in 2023 and is expected to rise further

Total Gold demand hit a record in 2023 and is expected to rise again in 2024 as the Fed moves towards easing rates alongside geopolitical tensions that remain elevated.

According to the World Gold Council (WGC), overall consumption climbed by about 3% in 2023, supported by strong demand in the opaque over-the-counter market, as well as from sustained central-bank buying, which is also the highest total figure in data going back to 2010.

We reiterate our 2024 commodities views that Gold is our most bullish call this year and agree with the WGC that bullion is set to hit record levels on a trifecta of Fed cuts, supportive central bank demand and bullion’s role as the geopolitical hedge of last resort.

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