JPMorgan: Gold will hit $2,175 in 2024

It is predicted by JPMorgan that gold prices will increase to $2,175 by the end of 2021.

It is recommended by UBS that the precious metal be purchased at a price of less than $1950 per ounce.

The beginning of the Fed's rate cuts will facilitate the growth of gold.

JPMorgan predicts that gold will reach all-time highs in 2024, with the fourth quarter of the year seeing the precious metal reach $2175 per ounce.

Greg Shearer, director of global commodity research at JPMorgan, stated that long-term investments in gold and silver are currently providing diversification and will be successful over the next 12-18 months.

He believes that the Federal Reserve will begin to reduce interest rates in the second quarter of 2024, which will stimulate the growth of precious metals. However, there is a risk of a mild recession in the United States in the upcoming year.

The Federal Reserve is anticipated to reduce rates in December by UBS, who also forecast that gold will reach new highs in 2024. The return of investors to gold-backed exchange-traded funds (ETFs) is expected to be a major factor in the increase of gold prices.

The price of gold has increased by approximately 20% since its lowest point last autumn, while the amount of gold held in exchange-traded funds (ETFs) has decreased and is now at its lowest level in over three years.

Central banks' demand likely drove the increase in precious metal prices, while other investors sold off due to the rising interest rates in the US.

UBS recommends that investors take advantage of gold drawdowns below $1,950 to purchase long-term investments.

The FxPro analyst team noted that gold reversed to the upside earlier this month after dropping to the 61.8% Fibonacci line from its rise from November lows to its peak in early May. This classic pattern has the potential to bring gold up to $2,370 (161.8% of the initial move).