Goldman Sachs Lifted 2024 Gold Price Forecast

SEATTLE (Scrap Monster): Leading brokerage firm Goldman Sachs raised gold price forecast for the end of the current year to $2,700 per ounce, significantly higher when compared with the earlier price forecast of $2,300 per ounce by end-2024.

According to Goldman Sachs, gold is likely to have entered into an unshakeable bull market. Unlike before, this bull market is not driven by the usual macro suspects, it noted. This is evident from the relative stability in the yellow metal prices even after the stronger-than-expected US CPI print released last week. The gold prices have rallied by nearly one-fifth over the past two-month period.

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The report noted that none of the traditional factors such as real rates, growth expectations and the U.S. dollar prices has not been adequate to explain the direction and quantum of the gold price move witnessed so far this year. The majority of the upside in gold prices since mid-2022 has been driven by new incremental factors, rather than traditional factors. Those factors still remain, thus offering chances of further surge in gold prices before the end of the current year, Goldman Sachs said.

The geopolitical tensions in the Middle East are expected to deliver short-term gains to gold prices. However, a potential peaceful resolution of the crisis situations in the Middle East and elsewhere could restrain upside in gold prices.