Analysts expect gold and silver prices to rise if the Federal Reserve cuts interest rates this year. According to a report by CNBC on Sunday.
Joni Teves, precious metals strategist at investment bank UBS, told CNBC that he expects gold prices to reach $2,200 an ounce by the end of the year.
“We expect gold prices to rise as a result of Fed easing, which is also accompanied by a weaker dollar,” Taves said.
In January, the Federal Reserve kept short-term interest rates unchanged at 5.25% to 5.5%, the highest level in 23 years, putting a damper on expectations for a rate cut in March.
meanwhile research has discovered Gold is not directly correlated to inflation in any meaningful way, and is being used in an attempt to find some sense of stability in an economy with rampant inflation, a tough real estate market, and growing distrust of banks. , people are likely to be buying more gold and other financial institutions, said Jonathan Rose, co-founder of Genesis Gold Group. told CNBC.
According to investment site investmentpedia, Gold prices are influenced by a variety of market factors, including supply and demand, interest rates, market volatility, and potential risks to investors. The spot price of gold was $2,034.78 as of Tuesday night.
More predictions for 2024
Thebes was also bullish on silver in 2024 if the Fed cuts rates.
“In a scenario where the Fed is more accommodative, we think silver will do very well. It will tend to outperform gold,” Taves said. “Silver is significantly underperforming gold, so I think there’s a lot of catching up to do and this move could be very dramatic.”
Silver’s industrial uses tie it to the overall health of the economy. According to Nasdaq.
The UBS report was subsequently published. report The Silver Institute predicts that global silver demand will increase by 1% to 1.2 billion ounces in 2024.
Jewelery demand was forecast to increase by 6%, while physical investment was forecast to decline by 6%.
The spot silver price was $22.42 per ounce as of Tuesday night.
Costco offers a path to gold
Retail giant Costco announced it sold more than $100 million worth of gold bars in the first quarter of 2024. According to CNBC.
This wholesaler sells 1 oz bars online, but only members can purchase them, with a limit of 2 oz bars per member. 1 oz PAMP Swiss Lady Fortuna Veliscan and rand refinery The bar is made of 24K gold.
