Chantelle Schieven

There are several factors that are likely to be positive for the gold price in 2024: lower interest rates, lower US dollar, continued central bank gold demand, and geopolitical/financial crises. Central banks, notably the US Federal Reserve, are expected to start lowering interest rates in coming months, and our expectation is that they will ease throughout 2024 and the US dollar is likely to continue to decline through 2024. Central bank demand for gold was at a record level in 2022-23. The days of gold being phased out of the international monetary system (1990-2008) are over! Dedollarisation, aided by fear of Western financial sanctions, are driving central banks back to the original reserve: gold. There are also numerous geopolitical crises on the horizon. Some analysts have compared the current period to the mid to late 1930s, before WWII. Gold could literally surge at any time on the back of any number of crises over the next several years.

The silver price is also likely to benefit from declining interest rates and a declining US dollar. In addition, silver industrial demand is expected to increase over the next several years. This along with the expectation that mine supply is likely to decline slightly will also help boost silver prices higher in 2024.