Bullion finished 2023 at $2,063 an ounce, climbing more than 13% year-on-year

Gold prices are expected to rally further in 2024 as lingering uncertainty about the prospects for the global economy spurs safe-haven demand for the metal, Reuters reported this week, citing industry experts.

Bullion finished the year at $2,063 per ounce, surging more than 13% year-on-year in its first annual gain in three years, and hitting an all-time high of $2,110 per ounce earlier this month. Prices have been rallying for more than two months, driven by investor demand in the wake of recession fears and expectations of interest rate cuts by the US Federal Reserve after an aggressive rate-hiking cycle that started in early 2022. Moreover, heightened geopolitical tensions in the Middle East have boosted the safe-haven appeal of gold. All these factors and more are still expected to buoy gold prices in 2024.

“Following on from a surprisingly robust performance in 2023 we see further price gains in 2024, driven by a trifecta of momentum chasing hedge funds, central banks continuing to buy physical gold at a firm pace, and not least renewed demand from ETF investors,” Saxo Bank’s Ole Hansen old Reuters. JPMorgan also predicts a “breakout rally” for gold in mid-2024, forecasting a peak of $2,300, when the US is expected to cut rates. UBS sees bullion hitting $2,200 by the end of next year on heightened geopolitical risks and inflation.

In its 2024 outlook published earlier this month, the World Gold Council said it expects central banks to continue their gold-buying spree, which could provide additional support for gold and further boost its appeal.

READ MORE: Countries stockpiling gold – report

However, some warn that things could change if US inflation spikes again.

“Gold could be forced to unwind some of this year’s gains if an inflation resurgence forces the Fed to abandon plans for a policy pivot in 2024,” Han Tan, chief market analyst at Exinity, told Reuters.

For more stories on economy & finance visit RT’s business section