The gold price hit a record high in 2023, and investors are now watching keenly to see what 2024 may bring. Here’s what experts see coming in the New Year. The gold price reached a fresh all-time high in 2023, buoyed by financial and geopolitical instability. The yellow metal neared a new record in the first half of the year as the banking crisis took hold, and it reached that milestone in H2, pushed upward by the conflict in the Middle East.
However, interest rate hikes from the US Federal Reserve helped make interest-bearing assets more attractive to investors, tempering the draw of the precious metal. With uncertainty continuing at the end of the year, what are the factors that will affect gold in 2024?
However, another key question is whether the Fed will be able to curb inflation without causing a recession. At the start of 2023, analysts were predicting a moderate to severe recession, but with the US economy continuing to show strength, opinions are split about whether 2024 will bring a soft landing or a harsher outcome.
2023 also saw artificial intelligence stocks help drive broader interest in the equities market, a trend that is expected to continue into 2024. The Bank of America is forecasting that the S&P 500 will reach a record 5,000 basis points in 2024, while Goldman Sachs predicted in mid-November that the index would hit 4,700 basis points by the end of 2024-it was able to break through that point by mid-December.