What will happen to the price of gold in 2024?

Bullish outlook for gold prices in 2024

Some notable financial institutions and experts are long on gold in 2024, starting with J.P. Morgan's projection of increasing gold prices in 2024, leading to a record-high $2,300 per ounce price in 2025. The financial services giant points to anticipated interest rate cuts by the Fed, geopolitical uncertainty and a weaker dollar value as key drivers behind the price jump.

Sean Casterline, the president and senior portfolio manager for Delta Capital Management, also foresees strong gold performance for similar reasons. "We expect gold to move higher and be one of the market-leading sectors for 2024," says Casterline.

Casterline notes that the U.S. dollar is one of the largest drivers behind the price of gold. "There's generally an inverse relationship between the value of the dollar and gold prices. When the dollar weakens, gold prices tend to rise, as gold becomes more affordable for investors holding other currencies. We believe the Fed will ultimately lower rates by 175 basis points in the next 18 months. With lower rates comes a weaker U.S. dollar. This could be the catalyst for higher gold prices."