ROBINSON RD, SINGAPORE / ACCESSWIRE / September 3, 2024 / Gold prices are expected to surge in the second half of the year, surpassing the previous record high of $2,480.25, according to Asia-based investment management firm, Derwent Investments.
The three primary factors influencing gold prices in the second half of 2024 are cited as US Federal Reserve interest rates, ongoing geopolitical risk and continuing central bank purchases.
Increasing demand
Gold continues to shine on growing speculation around lower US interest rates this year. Recent dovish comments by Fed officials, complemented by a broadly weaker dollar and subdued Treasury yields, have sweetened appetite for the precious metal.
Bullish outlook
Edward Chandler, Director of Private Equity at Derwent Investments opined, "Frankly, this shouldn't come as a surprise given the broad market expectations of lower interest rates from the Federal Reserve. One need only look at who is buying gold to understand why the outlook for prices of the yellow metal is so bullish. Buying in China and Asia in general shows no signs of abatement and smart money is all too aware of the fact that the highly indebted US and its dollar are headed for a reckoning at some point," he added alluding to America's colossal sovereign debt pile currently approaching $35 trillion.
According to the London Bullion Market Association's (LBMA) latest review, all but one analyst expects the gold price to exceed the record high of $2,480.25 achieved on July 17, 2024, during the second half of the year. The average forecast suggests gold could reach $2,547.
$2,750 possible
"We think those forecasts are too conservative. Our view is that gold could very easily reach $2,750 this year irrespective of any uncertainty represented by a potential Trump victory in the November 2024 US presidential election and the subsequent expectation of more protectionist policies that could strengthen the US dollar and potentially hurt gold prices. This is about more than the US and investors should ensure that at least 10% of their portfolios are held in gold," concluded Chandler.
Bullion prices are hovering above the $2,400 level, as the background narrative for traders remains positive due to the recent slowdown in US economic activity and lowering inflation, which has increased the likelihood of a Fed rate cut in September.
About Derwent Investments:
Derwent Investments is a leading investment management firm committed to delivering superior investment results and client service that is second to none. With a team of experienced professionals and a disciplined, research-led approach to investing, the firm provides innovative solutions and opportunities for medium-to-long-term capital growth. Derwent Investments' focus on research-driven investment strategies ensures that clients benefit from the latest market insights and technological advancements.
Media Contact Details
Derwent Investments Pte Ltd
www.derwentinv.com
media@derwentinv.com
SOURCE: Derwent Investments Pte Ltd
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