(Kitco News) – Gold will rise in 2024, but the rise will be gradual, said Ronald Peter Stoffel, Managing Partner of Incrementum AG.
In mid-January, Stoeferle spoke with Kitco Mining at the 2024 Vancouver Resource Investment Conference.
The precious metal hit an all-time high of $2,135 an ounce in December, but Stoffel said the Fed has become more hawkish on interest rate cuts and a rebound in U.S. Treasury yields has pushed prices higher. , said gold is likely to remain flat in the first half of this year. . His estimate is $2,300 to $2,400.
He noted that it is unusual for gold to be trading at such high prices, given that interest rates are above 5%, inflation is falling and real interest rates are “actually exploding up”. did.
“I would have said gold should be trading at $1,600, which means from my perspective the strategy for gold has changed.”
Central bank purchases will be one of the main drivers for gold in 2023, and Stoffel expects that to continue. But he said the de-dollarization trend was making gold more important.
“Gold has always just been sitting in the basements of central banks,” he said. “Now it's becoming very valuable as a dollar hedge, as a diversification tool, as a reserve asset with no counterparty risk, as a very liquid reserve asset. So this is very important. I think that's the price of gold. ”
Regarding the commodity complex, Stoffele said it's the last time investors have been this underweight in commodities relative to bonds since late 2008, adding: “Now is the time to do your homework to start allocating.” said.
Coverage of the 2024 Vancouver Resource Investment Conference is sponsored by Snowline Gold.
Disclaimer: The views expressed in this article are those of the author and may not reflect the views of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided. However, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation for the exchange of products, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept liability for losses and/or damages arising from the use of this publication.
