Analysts predict gold prices will average $2,547 per ounce in the second half of the year, according to the London Bullion Market Association (LBMA). This forecast follows a record price of $2,480 per ounce on July 17.
The LBMA reviewed 14 analysts’ forecasts, showing optimism about gold’s future. Some even predict prices could reach $2,650 per ounce. The lowest forecast stands at $1,985 per ounce, indicating a broad range of expectations.
The average price for gold in the first half of the year was $2,205 per ounce. Analysts had earlier predicted an average of $2,059 per ounce, falling short by 7.1%. This strong performance has surprised many in the industry.
Several factors are expected to drive gold prices higher. The US Federal Reserve’s interest rate movements will play a significant role. Geopolitical risks and central bank purchases are also crucial influences.
Interest rates are a key determinant in gold price movements. Lower rates tend to boost gold prices, as they decrease the opportunity cost of holding non-yielding assets like gold. The Federal Reserve’s actions in the coming months will be closely watched by market participants.
Geopolitical risks often lead to increased demand for safe-haven assets, including gold. Ongoing tensions in various parts of the world could spur investors to seek refuge in gold, further driving up prices.
Central banks have been substantial buyers of gold in recent years. Their purchases are expected to continue, providing a solid foundation for gold prices. These institutions seek to diversify their reserves, reduce reliance on the US dollar, and hedge against inflation.
The gold price forecast reflects a combination of optimism and caution. While some analysts expect prices to soar, others remain conservative in their estimates. This diversity of opinion highlights the complexities and uncertainties in the market.
Overall, the outlook for gold remains positive. Analysts see several potential catalysts for higher prices, including macroeconomic factors and geopolitical developments. Investors and industry stakeholders will be watching closely as the second half of 2024 unfolds
Source: Mining Weekly
