Amid Gold’s Recent Slide, Experts Predict a Shining Future with Potential Highs Beyond $2,500 by 2024
In recent times, gold and silver have faced a downtrend, with gold losing over 2% of its value in the past month and silver tumbling more than 5% against the U.S. dollar. Even amid gold’s rather uninspiring performance this last month, David Neuhauser, the founder of the investment company Livermore Partners, forecasts that gold’s worth could rise to $2,500 by the close of 2024.
From Slump to Surge: Some Expect Gold to Bounce Back
Approximately three years ago, in August 2020, gold soared to an unprecedented peak, hitting $2,074 per ounce, while silver simultaneously reached a high of around $28 per ounce on August 6 of the same year.
Since then, however, the luster has faded from these precious metals, and prices have slid downward. As of August 12, 2023, gold’s current trading price stands at $1,913 per ounce, with silver trailing at $22.67 per ounce.
Earlier in the month, on August 1, the World Gold Council (WGC) published the latest Gold Demand Trends report, shedding light on gold’s performance in the first half of the year, buoyed by a high level of central bank acquisitions.
The WGC further elaborated that the half-year success of gold was bolstered by thriving investment markets and a resilient demand for jewelry. However, even amidst these favorable conditions, the report divulged that gold demand (excluding over-the-counter or OTC) experienced a 2% year-over-year dip to 921 tons during the second quarter.
“Inclusive of OTC and stock flows, total demand strengthened 7% y/y to 1,255t,” the WGC’s Gold Demand Trends Q2 2023 report clarified. Although gold and silver have lost ground in the past month and remain significantly below their 2020 peaks, some industry experts retain an optimistic outlook, foreseeing bullish trends toward the close of 2023 and 2024.
In an email sent to CNBC, Bart Melek, TD Securities’ managing director and global head of commodity strategy, shared his perspective that gold could rise above $2,100 in the latter part of 2023 or the commencement of 2024. Melek attributed this optimistic projection to the U.S. Federal Reserve’s quantitative tightening, pinpointing it as the catalyst for the bullish forecast.
Additionally, Livermore Partners’ founder, David Neuhauser, conveyed to CNBC’s Lee Ying Shan that he foresees gold reaching the remarkable milestone of $2,500 by the conclusion of the upcoming year. “2024 is when I see gold breaking out and reaching new highs and beyond,” Neuhauser said.
“My target is $2,500 by the end of 2024 … Much of this has to do with the fact that recessionary forces may take hold beginning later this year and gain steam in 2024,” the Livermore Partners executive added.
In a report from Capital.com, ANZ research provided a prediction in May 2023, anticipating that gold could be trading at $2,100 by the close of 2023, and near $2,200 by September 2024. Furthermore, the same report reveals that Walletinvestor, an algorithm-driven price prediction platform, explains that the precious metal’s price will surge to $2,289 by May 2028.
What do you think about the experts who believe gold has a bullish future ahead? Or do you see gold’s downtrend continuing? Share your thoughts and opinions about this subject in the comments section below.
