Gold Hits Record Highs: Is It Too Late To Invest?
NEW YORK (March 5) The recent surge in the price of gold has captured the attention of investors. As gold closed at record-breaking highs, many are wondering whether it's still a prudent time to invest in the precious metal.
Gold Price Today
The spot gold price closed Monday’s session at $2,114 per ounce after touching a high of $2,119. However, that rally has continued so far on Tuesday, with the spot price of the yellow metal currently at $2,127 per ounce, not far off its record high set in December last year.
With investors continuing to bet on the Federal Reserve cutting rates in June, the rally could see gold make a new all-time high soon.
Gold Price Forecast 2024
When it comes to where the price of gold could head next, HSBC analysts said in a note this week that the gold rally resumed “despite higher yields.”
While they believe the yellow metal is “likely to reach new record highs,” they also state it “may be overstretched.” Gold has an ”undercurrent of support from geopolitics and financial market uncertainty,” added HSBC. They also believe physical demand is likely to recede.
Elsewhere, Citi analysts said they are medium-term bullion bulls and assign a 25% probability that the yellow metal will average a record $2,300 per ounce in the second half of 2024. ”In a low probability wildcard scenario, nominal gold trading could reach $3,000/oz in the next 12-16m,” they declared.
“As listed gold trading flows have shifted from Comex and ETFs to OTC markets and net long positioning remains soft, there is plenty of scope for a medium-term rally after prices consolidate,” added the bank, “Clearly, if the recent topside move sustains for some time, there will be bullish risk to our base case record gold price outlook for cal’24.”
Analysts at GoldPriceForecast are more cautious, noting that during election years, the gold average annual return is mixed.
UBS analysts provided their outlook for gold in 2024 in a recent note, stating that demand for the yellow metal remains solid despite rates repricing.
The bank retained its gold forecasts for the end of June at $2,050 per ounce, the end of 2024 at $2,250 per ounce, and introduced a $2,250 per ounce target for the end of March 2025.
"We maintain gold is an attractive standalone investment and can be used as a portfolio hedge against risk events," said UBS.
Investing.com
