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INVESTING IN GOLD MINING
GOLD PRICE PREDITION
WHY THIS PRO THINKS WE'LL SEE 5K
INVESTOR PLACE
Chris MacDonald - Contributor
October 19th 2023
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Peter Schiff is one of the most outspoken gold bulls in the market.
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His view that gold could breach $5,000 per ounce is controversial.
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He does posit some strong fundamental reasons why this is possible and outlines scenarios in which that would happen.
Gold has continued to perform well this year, surging to nearly $1,950 per ounce at the time of writing. With gold looking to break through the key psychological threshold of $2,000 per ounce and potentially make a new resistance level, investors in precious metals and alternative assets have their eye on how this asset class will perform. Indeed, with inflation continuing to remain rampant, many investors are looking for a store of value that won’t lose its value.
One such investor who has held his faith in the yellow metal is Peter Schiff. According to the Euro Pacific Capital CEO, the Federal Reserve isn’t likely to continue to tighten but will eventually expand quantitative easing (QE).
He suggested the U.S. economy relies on quantitative easing and is heading back into recession, essentially wiping out all the work the Fed has already done. Schiff thinks gold will hit $5,000 per ounce.
On December 30, 2022, gold closed the year at $1,819.70 per ounce. Flash forward to one year later, and gold closed 2023 at $2,062.40. That’s a gain of 13.3% in a single year. With gold currently pushing to new record highs, it’s an extremely exciting time for gold investors. Predicting the future of gold prices is never easy, but to offer some insights into what 2024 might hold, we've compiled an array of gold price forecasts, outlooks, and predictions from renowned banks, industry experts, and financial analysts.
Bank of America
In Bank of America’s 2024 “Metals and Mining Outlook”, the author shares that strategists with BofA think that if the Fed cuts rates before the second quarter, “gold could finish 2024 at $2,400 per ounce.”
UBS Bank
“We think that a Fed easing policy will be quite supportive for gold. We think there's a strong negative relationship between gold and real rates so that decline in real rates should push prices higher... and we think we are looking for $2,200 by the end of next year...” - Joni Teves, UBS Bank
Goldman Sachs
Goldman Sachs forecasts a 2024 average gold price of $2,133 per ounce, citing its role as a safe-haven asset amid rising uncertainties like banking stress and a probable US recession, fueling market fear.
CitiGroup
Edward Morse, MD & Global Hd, believes that gold prices could go up to $2,400 an ounce. Morse said, “We certainly think it will go to $2,400 an ounce. Our probability on that is fairly high. We remain bullish on gold. But we have to remind investors that this is a choppy road, and they need patience.”
ING
“We expect gold prices to hit fresh highs next year and to average $2,100/z in 4Q, with a 2024 average of $2,031/oz on the assumption that the Fed starts cutting rates in the second quarter of next year, the dollar weakens, safe-haven demand continues amid global economic uncertainty and central bank buying remains at high levels.”
Wells Fargo
“We believe gold could add to its positive price momentum in 2024 as its recent headwinds appear poised to reverse and become tailwinds in 2024.” Prediction: $2,100 - 2,200 by end of 2024