Gold Still Higher for #World Bank
The record reached by the #gold market on April 12th above 2400.0 dollars an ounce could represent a peak for the prices of the precious metal for a long time to come. However, investors should not expect large price drops from current levels, at least according to the #World #Bank which expects #gold to gain 8% during 2024.
In its Commodity Market Outlook for 2024, the #World #Bank said it sees #gold prices averaging around $2100.0 per ounce. The bullish forecast comes after #gold prices rallied 4% in the first quarter of this year and have taken off ever since.
The international financial institution, which calls itself “the central #bank of central banks”, said that “heightened geopolitical uncertainty due to the escalation of ongoing conflicts could push #gold prices to a higher level (…). Safe haven demand is set to strengthen further in 2024 amid heightened political uncertainty, partly linked to the large number of upcoming elections around the world.”
U.S. bond yields have risen sharply since the start of the year, as markets have pushed back the timing of the Federal Reserve’s monetary policy easing cycle. Growing inflationary pressures are forcing the Fed to maintain its restrictive policy for longer than expected. The #World #Bank noted that “overall, disinflationary winds from moderating commodity prices appear to have run out. Prices remain high compared to pre-pandemic levels, despite subdued global GDP growth.”
