World gold price could reach 2,400 USD/ounce next year

Gold prices are expected to have a breakthrough next year. Illustration photo: Phan Anh

In a recent interview, Philip Petursson, chief investment strategist at IG Wealth Management, said that even at $2,000 an ounce, gold still has the potential to increase significantly. Specifically, gold prices will increase significantly next year.

“Gold has been weighed down by the strength of the US dollar for much of this year. They tend to be inversely correlated, so when the US dollar strengthens, gold tends to weaken a bit. Now, if the US dollar starts to trend lower in 2024 as we see, that would be positive for gold,” the analyst said.

IG believes that gold is currently undervalued by up to 20%. “Once it solidly breaks through $2,000 an ounce, we think gold could move higher to potentially $2,400 an ounce,” said Petursson.

IG Wealth Management expects this bullish scenario to play out even as US bond yields remain at multi-decade highs. The firm also expects the US economy to have a “soft landing” and avoid a recession.

“As we look to 2024, we still believe higher bond yields will continue to create some volatility in equity markets. However, our economic view remains oriented towards a soft landing scenario in the US, leading to a more cautious view on US equities over the next 12 months. Meanwhile, fixed income investors will generally benefit from higher interest rates,” Mr. Petursson noted.

Source: https://laodong.vn/kinh-doanh/gia-vang-the-gioi-co-the-len-2400-usdounce-trong-nam-toi-1265581.ldo