XAU/USD set to hit fresh highs in 2024 – MUFG

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Gold has been on a roller-coaster ride in H2 2023, slumping in September before surging to a record earlier this month. Economists at MUFG Bank analyze the yellow metal’s outlook for 2024.

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Higher rates are typically negative for noninterest bearing assets, and thus the starting point of rate cuts matters for Gold’s outlook.

Gold – our most structural bullish call for 2024 – is set to hit record levels on a trifecta of Fed cuts, supportive central bank demand and bullion’s role as the geopolitical hedge of last resort.