Market Update February 27 – Gold Price to Rise in 2024

The price of gold continues to advance slowly as investors await signals of the Fed’s next move. Despite recent indications of a ‘higher for longer’ stance from the Fed on interest rates, gold has remained firm for the past five trading sessions, currently trading in the USD $2040/oz range. Silver also remains stable, maintaining its range of $22.50-$23/oz. The metals are currently benefiting from a relatively unchanged geopolitical and macro-economic situation. Purchasing of physical bullion remains persistent, particularly in Asia, while ETFs continue to experience net outflows. Catalysts such as escalating geopolitical tensions remain on the backburner.

The death toll in Gaza has now surpassed 30,000, and the United States continues to push for a ceasefire ahead of the planned Israeli offensive into the southern city of Rafah, where it is estimated that over half of all Palestinians are now sheltering.

On the Ukrainian front, Russia made some significant gains last week, notably taking the city of Avdiivka. Funding to support the Ukrainian military effort remains tied up in Congress, despite President Biden’s assurances that it will be approved.

Domestically, Congress faces its own looming deadline. It needs to approve funding for several key agencies before Friday to avert a partial government shutdown. Historically, funding measures have always been approved but serve as yet another distraction for lawmakers clamoring for political capital.

And finally, Goldman Sachs has predicted that the price of gold will climb by 6% in 2024 to $2175 per troy ounce. The global investment bank cites strong central bank buying, particularly China, which is divesting its US dollar reserves and shifting to gold, as a leading cause for the increase.

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Mark Yaxley, CEO of Strategic Wealth Preservation (SWP), began his journey in precious metals with Kitco Metals in 2006. Co-founding SWP in 2014, he now guides individual and commercial clients towards their investment goals. Renowned for his 'Inside the Vault' YouTube series, Mark has helped millions gain insights into gold and silver bullion ownership.