The World Gold Council (WGC) recently released the paper, Gold Outlook 2024: Where do we go from here? According to the research, gold had a strong 2023, defying predictions in an environment of rising interest rates and outperforming commodities, bonds, and most stock markets.
Investors will most certainly witness one of three situations in 2024. Market consensus predicts a’soft landing’ in the United States, which should benefit the global economy.
Soft landing situations have historically been unappealing to gold, resulting in flat to slightly negative average returns. Having saying that, each cycle is unique. This time, increased geopolitical concerns in a key election year for several major economies, along with sustained central bank purchases, may give extra support for gold.
Furthermore, the Fed’s ability to shepherd the US economy to a safe landing with interest rates above 5% is far from clear. A worldwide recession is still on the horizon. This should encourage many investors to have good hedges in their portfolios, such as gold. (More information about the report will be posted here soon.)