Surprising Forecast About Latest Gold Price Peak

Ole Hansen, head of commodity strategy at Saxo Bank, has been bullish on gold since the start of the year. In his Q4 outlook, he said he would maintain a positive view on the precious metal.

“We forecast further gains in gold prices through year-end and into 2025, until the metal can reach the psychologically important $3,000/ounce level,” he said in his report.

Hansen’s comments come as gold prices continue to consolidate at higher levels. December gold futures last traded at $2,673 an ounce, up 0.13% on the day.

Hansen said he expects to see some consolidation in gold prices in the near term, arguing that bullish positioning remains at a four-year high.

Despite the less positive forecasts from some experts, Hansen said the market remains well supported as the US Federal Reserve begins a new easing cycle. He also noted that investors are starting to return to gold-backed exchange-traded funds as interest rates fall.

Additionally, the expert commented that geopolitical uncertainty will continue to support gold's appeal as a safe haven.

Meanwhile, market analyst Han Tan of Exinity Group said that if the unemployment rate in the US is higher than expected, it will force the US Federal Reserve (FED) to loosen its policy and that move could bring gold prices back to all-time highs.

"We could see gold hitting $2,700 an ounce in the near term, as long as expectations of a Fed rate cut remain intact," Han Tan added.

“Although overall demand has eased from its highs in early 2024, gold reserve accumulation remains active, with activity concentrated in emerging market central banks,” Marissa Salim, senior research director at the World Gold Council (WGC), wrote in their latest monthly report.

“Emerging market central banks accounted for 70% of reported net purchases through October, with Türkiye accounting for 25% of total central bank purchases year to date,” she said.