A recent poll by Investing.com revealed that 49.9% of respondents expect gold prices to range between $2,600 and $3,000 by the end of 2024. Out of 2,330 votes, 32.3% believe the price could exceed $3,000, while 17.9% predict it will stay below $2,600.

Currently, spot gold has risen by 0.7% to $2,674.56 an ounce, while December gold futures increased by 0.5% to $2,697.60 an ounce. The rise in gold prices is largely driven by a 50-basis-point rate cut by the Federal Reserve, with further rate reductions expected. Lower interest rates generally boost gold prices by reducing the opportunity cost of holding non-yielding assets like gold.

UBS analysts have raised their gold price forecast to $2,750 by the end of 2024, up from $2,600. Meanwhile, Bank of America analysts caution that while prices are above the 200-day moving average, returns on gold tend to be flat 1-6 months after hitting such extremes. They warn that slower-than-expected Fed rate cuts could temper gold’s rise.

Investors are closely watching upcoming remarks from Fed Chair Jerome Powell and key U.S. economic data. Powell has indicated the recent rate cuts aim to protect the labor market while addressing inflation, though not all Fed officials agree on the size of the rate reduction.

https://www.investing.com/news/commodities-news/ubs-lifts-its-forecast-for-gold-prices-3633737