BMI raises gold price forecast to US$2,375 per ounce for 2024
BMI, a unit of Fitch Solutions, has raised its 2024 gold price forecast from US$2,250 per ounce to US$2,375 per ounce. The firm is expecting gold prices to trade within the range of US$2,500 per ounce to US$2,800 per ounce in the months to come, according to its report released on Thursday.
"This marks a departure from the US$1,943 per ounce average seen in 2023.
"We are now neutral to bullish towards gold for 4Q2024-1Q2025, as prices receive support from the US Federal Reserve's (Fed) rate cuts and high levels of geopolitical tension," it said.
BMI predicts this upward trend will continue, with average prices reaching US$2,500 per ounce in 2025.
The firm also noted that gold hit a historic high of US$2,670 per ounce earlier in Sept 25, driven by the first Fed rate cut in March 2020, a weaker US dollar, and lower bond yields.
However, BMI also warned of potential downside risks to gold, particularly if Donald Trump wins the upcoming US presidential election in December, which could strengthen the US dollar and put downward pressure on gold.
Looking forward, BMI projects that gold prices will remain significantly higher than pre-pandemic levels, supported by robust demand and limited downside risks.
Global gold production is also expected to see an increase from 101.4 million ounces in 2023 to 131.6 million ounces by 2033, driven by elevated gold prices, which are expected to boost investment and output over the medium term (2024-2028).
Source: https://theedgemalaysia.com/