Gold prices have experienced a significant rally in 2024, reaching record levels. This surge can be attributed to factors such as central bank accumulation, a shift in the Federal Reserve's monetary policy, and ongoing geopolitical tensions.
While a period of consolidation is expected, analysts from UBS and Goldman Sachs remain optimistic about the long-term outlook for gold. They project further gains in the coming years, driven by increased demand from central banks and a growing interest in exchange-traded funds. The demand for gold is expected to be driven by strategic allocations from both private and official sectors, as central banks seek to diversify their reserves.
Despite a recent pullback in gold prices following the US presidential election, analysts believe that gold will resume its upward climb once the market stabilizes. The interplay between fiscal policy and gold prices is significant, as gold serves as a hedge against inflation and currency devaluation. Overall, gold is seen as a key asset for investors seeking stability and growth in a volatile economic backdrop.