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Experts suggested it would continue gold Its rises in 2024 reached new record levels, supported by the US interest rate cut at the end of the first quarter of the year, after a year of rising against the backdrop of geopolitical tensions and curbing further interest hikes by major central banks.
What about gold’s performance in 2024?
Chief market analyst at Equity Group, Raed Hamid Al-Khader, in an interview with Al Jazeera Net, expected that the price of gold would exceed $2,100 per ounce during the first quarter of this year, and that it might attempt to achieve a new historic peak.
The economist at Intesa St. Paul, Daniela Corsini, went further, as she expected that the price of an ounce in the new year would reach $2,300 if the Federal Reserve (the US central bank) adopted a monetary easing policy and an unexpected escalation in geopolitical risks occurred. As reported by Reuters.
The relationship between gold andDollar Mostly, it is the opposite – according to Al-Khader – if the conditions of the American economy improve and the bank adopts a monetary tightening policy and raises interest rates, this may cause the dollar to support and investors to move away from non-yielding assets such as gold. Also, with the improvement of economic conditions in the country, bond yields will rise. It is also an indicator of the possibility of higher inflation.
This is supported by the chief market strategist at Orbex Egypt, Assem Mansour, who told Al Jazeera Net that gold will achieve significant gains in 2024, with central banks, especially the People’s Bank of China (the Chinese central bank), tending to increase its holdings of the yellow metal after dispensing with a certain percentage of… The dollar has been used as an economic weapon in many crises, in particular The Russian-Ukrainian war.
In general, Mansour expects that an ounce of gold will move towards a new price range this year, and recommends buying during this period.
Mansour believes that the purchasing outlook will be very large in 2024, with the ouguiya stabilizing above $2,000 and at the $2,100 range.
2023 performance
Gold recorded its best annual performance in 3 years, during 2023, supported by expectations that the Federal Reserve will begin easing its monetary policy in March 2024.
Gold ended 2023 transactions at $2,062.49 per ounce, when the last 2023 transactions were settled, but US futures contracts recorded $2,074.50 per ounce.
The yellow metal has risen about 14% since the beginning of last year amid volatile performance, as prices moved between low levels near $1,800, earlier in the year, before rising to a record level of $2,135.40 on the fourth of last December.
Al-Khader said that the expansion of risk aversion due to the conflict in the Middle East in 2023 contributed to increasing demand for gold as it is the first safe haven that investors turn to in times of crises.
Downward pressure
Ahmed Najm, head of the market research department at XS.com, told Al Jazeera Net that the year 2023 witnessed downward pressures before October while adhering to the policy of monetary tightening, but the year concluded with significant increases that began in October, amid expectations of a reduction in prices. Benefits on the part Federal Reserve (US Central Bank).
As for other precious metals, silver stabilized during the year’s trading at $23.79 per ounce, while platinum declined 7.3% to $992 by the end of the year.
Goods
On the commodities front, Chicago corn futures closed the year with the biggest annual loss in a decade, while wheat and soybeans also recorded sharp annual declines after the huge harvests in Brazil and the strength of trade in the Black Sea eased concerns about weather and war.
Overall, the most active corn contract closed down 31% over the course of 2023, the largest decline since 2013 for the most traded crop globally.
Wheat fell 21% this year, while soybeans lost 15%.
Cereals and vegetable oils ended a multi-year series of price gains related to crop declines, the Covid-19 pandemic and the Russian-Ukrainian war.
Record corn crops this year in Brazil and the United States – as well as an all-time high in Brazilian soybean production – helped offset severe drought in Argentina.
But improved rainfall in Argentina near the end of the year allowed farmers to make good progress in planting the next corn and soybean crops.
Farmers are likely to feel the effects of lower prices next year and prioritize growing soybeans in the United States.
A state of calm prevailed in grain markets thanks to large wheat exports from Russia, which also harvested a huge crop this year, and the recovery of grain shipments from Ukraine after Kiev operated a new shipping lane.
