Amid expectations of a US rate cut, the price of Gold (XAU/USD) falls 2% on the year, from a high of $2,135 in December 2023. ANZ Bank economists analyze the outlook for the yellow metal .
Gold will continue to shine
Tactical investors have reduced their net bullish positions by 276 tons, while global strategic ETF outflows hovered around 82 tons over the year. Strong equity market sentiment may also have temporarily dampened Gold's relative appeal. However, We believe these developments reflect consolidation rather than a downtrend.. While strong demand for Gold may have been temporarily extended, it is unlikely to last.
This year's elections and rate cuts (when they occur) will ultimately boost Gold's appeal among investorsreinforcing the tailwind of structurally higher purchases by central banks.
We forecast a Gold price of $2,200 by the end of 2024.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
