BMI raises 2024 gold price forecast by 6% to $2,375 per ounce
This story was originally published at 14:59 IST on 10 October 2024
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MUMBAI – BMI, a unit of Fitch Solutions, increased its gold price forecast for 2024 by 6% to $2,375 per ounce. It is neutral to bullish towards gold till the first quarter of 2025 as prices get support from the US Federal Reserve's interest rate cuts and rising geopolitical tensions, it said in a report. The company expects gold prices to trade within the range of $2,500-$2,800 per ounce in the coming months.
Gold prices rose to an all-time high of $2,670 per ounce on Sept. 25, the report said. Gold prices rallied following the US Federal Reserve's interest rate cut on Sept. 18 as a weaker dollar and lower bond yields supported prices. However, the upside in gold could be capped if Donald Trump wins the US presidential elections in December, which would support the dollar and put pressure on the yellow-metal.
"We note that the US Fed rate cut comes against a myriad of geopolitical tensions, with conflict in the Middle East (West Asia) and the upcoming presidential elections in the US at the forefront," BMI said. It expects prices to remain elevated in the coming years compared with pre-COVID levels.
Global mine production in the medium term (2024-2028) will grow strongly as high prices encourage investment and output, the report said. Global gold production is expected to rise to 131.6 million ounces by 2033 from 101.4 million ounces in 2023. At 1315 IST, the most-active December gold contract on the COMEX was up 0.3% at $2,633 per ounce. End
US$1 = INR 83.96
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Ashutosh Pati
Edited by Vidhi Verma
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