Gold Price Forecast: XAU/USD to average above $2,000 in 2024 – ANZ

FXStreet Insights Team FXStreet

Gold price rose more than 20% to a record high of $2,135 in 2023. Strategists at ANZ Bank analyze the yellow metal’s outlook for the next year.

Upside to be capped for Gold in the near term

Going into 2024, we expect Gold price to average above $2,000.

While we hold a positive stance for Gold, the latest price rally looks overdone. Steady rates till H1 2024 and falling inflation will see real rates rising by 50-100 bps, which will be negative for Gold investments. Therefore, we believe the upside to be capped for Gold in the near term.

Our long-term bullish view for gold hinges on three drivers: First, the Fed will start cutting interest rates, which will reduce the opportunity cost of non-yielding Gold. Second, economic, political and geoplitical risks are expected to remain heightened in 2024. The upcoming US elections will increase policy uncertainty, while prospects of slowing economic growth might encourage investors to diversify their portfolios by adding Gold. Third, central bank purchases sustain even after two years of strong buying. We estimate central bank buying to be in the range of 800-850t, but there could be an upside risk to this number.

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Changing the game: International implications of recent tariff developments

The Supreme Court ruling on International Emergency Economic Powers Act (IEEPA) tariffs provides limited relief for the rest of the world, with weighted average tariff rates modestly lower.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.