Strategists at Crédit Agricole have made an upward revision to their Gold price forecast for 2024.

Three factors behind the revised outlook

“We now expect Gold to peak at $2,050 by Q1 2024 and then ease back to $2,000 by the end of Q2 2024. We continus to hold our previous target of $2,000 for the precious metal by the end of 2023.”

“The ongoing US debt-ceiling debacle has prompted investors to flock to Gold, viewing it as a safe haven and a reserve asset in times of uncertainty. Gold has historically performed well during past debt ceiling incidents, often holding onto and even extending its gains in the months following a debt ceiling resolution.”

“US political risks could continue to boost Gold's appeal, even after the current debt ceiling issue is resolved. If the statutory debt limit is extended until January 2025, the ensuing political wrangling could amplify risks surrounding the 2024 US presidential election.”

“We predict a weakening USD in late 2023 and early 2024, due to expectations of the Federal Reserve entering an easing cycle amidst a potential US recession and subsiding inflation. This scenario is likely to further enhance Gold's attractiveness.”