Gold prices, measured in terms of how much gold you can buy with one US dollar (XAU/USD), have gone up past $2,200. Economists at ANZ Bank are looking at the future of gold and analyzing what might happen next.
The timing and pace of the easing cycle will be crucial
Growing concerns about conflicts and tensions between countries are becoming more important, which is making people want to invest in safe-haven assets like gold.
People in the market are not paying much attention to the idea that the Federal Reserve might make it easier to borrow money. Instead, they’re thinking more about when interest rates might be lowered later in 2024. We predict that the first rate cuts will probably happen in July.
We still think the price will go up, but it might go down for a bit if there aren’t any new reasons for it to keep rising in the second quarter of the year. However, we expect it to reach $2,300 by the end of the year.
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