Gold is benefitting from both geopolitical crisis and a recent USD sell-off. 

Investment demand, which has been largely lacklustre this year, is firming up.

Weaker-than-expected economic data are bolstering expectations for early rate cuts by the US Federal Reserve. While retreating inflation raises risk of real rates rising in H1 2024, rate cuts later in the year should be supportive for Gold investment demand. 

We expect Gold to trade above $2,000 next year as strong central bank purchases will be joined by strategic investment demand.