Commerzbank anticipates gold prices consolidating around $2,500 per ounce by year-end 2024. The bank has raised its year-end forecast to $2,500, reflecting a $200 increase, driven by expectations of U.S. Federal Reserve interest rate cuts. However, they do not expect significant new highs for gold this year, as much of the bullish momentum has already been priced in.
Key Points:
Current Level: Gold has seen a 20% increase since February, with prices hovering around $2,500.
Outlook: The rally is expected to continue into the first half of 2025 due to further rate cuts, persistent U.S. inflation, and a weaker dollar.
Caution: Higher gold prices might dampen physical demand, and central banks may slow their gold purchases.
Other Metals: Commerzbank remains neutral on silver, platinum, and palladium, citing industrial demand concerns.
Conclusion: While gold is expected to stabilize around $2,500 by year-end, Commerzbank foresees further gains in 2025 as economic conditions evolve.
Sources:
Commerzbank sees gold prices consolidating around $2,500 by year-end, Neils Christensen,KITCO, Aug 20 2024
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