Gold Price Forecast: XAU/USD to trade above $2,000 next year – ANZ

FXStreet Insights Team FXStreet

Gold surged past $2,000 as the Fed hinted at rate cuts in 2024. Economists at ANZ Bank analyze the yellow mental’s outlook.

Strong central bank purchases will be joined by strategic investment demand

Gold is benefitting from both geopolitical crisis and a recent USD sell-off.

Investment demand, which has been largely lacklustre this year, is firming up.

Weaker-than-expected economic data are bolstering expectations for early rate cuts by the US Federal Reserve. While retreating inflation raises risk of real rates rising in H1 2024, rate cuts later in the year should be supportive for Gold investment demand.

We expect Gold to trade above $2,000 next year as strong central bank purchases will be joined by strategic investment demand.

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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.

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