Gold prices may have peaked for 2024 - Capital Economics

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Gold prices may have peaked for 2024, according to Caroline Bain, Chief Commodity Economist at Capital Economics. She believes that the recent surge in gold prices, which reached above $2,400, is out of line with the interest rate outlook and expects prices to fall back to earth by the end of the year. Bain maintains her year-end gold price target of $2,100 an ounce and predicts silver prices to end the year around $26 an ounce. The surge in gold prices has been driven by physical bullion demand in China, but Bain expects this demand to weaken through year-end. She also notes that geopolitical uncertainty in the Middle East has generated safe-haven demand for gold, but she does not believe it is a sustainable trend. Overall, Bain expects gold prices to decline as markets adjust to the expectation that the Federal Reserve will maintain its aggressive monetary policy longer than expected.

#Gold #Silver #CapitalEconomics #CarolineBain #FederalReserve #MonetaryPolicy #China

https://www.kitco.com/news/article/2024-04-15/gold-prices-may-have-peaked-2024-capital-economics