The fourth quarter saw gold’s price increase more than 10% as it crossed the $2,000/oz threshold. It’s now hovering around $2,045/oz. Several strategists in the gold space expect the precious metal’s rally to continue in 2024. And some even believe it could outperform all other commodities this year.
“I still see gold heading higher versus all commodities,” Mike McGlone, senior macro strategist with Bloomberg Intelligence, said on The Tape Podcast.
In the podcast, he highlights that much of the upward trajectory of gold’s price is being driven by central banks purchasing the precious metal in large quantities. McGlone also highlights that he doesn’t expect this trend to stop in 2024. He names this as a major contributing factor to his expectations of gold having a positive performance in 2024.
In addition, a recent article from State Street Global Advisors reveals that a “Shifting monetary policy, an economic slowdown, and elevated volatility may create a positive environment for gold. Additionally, growing demand from fundamental factors exogenous to macroeconomic variables should continue to support gold.”
With experts and strategists giving several different reasons as to why they are expecting big things from gold this year, there could be quite a bit more runway ahead of the metal. Its recent performance aside, gold has typically been used as a store of value and for diversification purposes. Currently, investors and advisors have many ETF choices that can provide exposure to it.