Articles
Striking Gold: Could Miner's Returns Outpace Gold Bullion?
Over the last three years, physical gold has significantly outshined gold-mining company shares, marking one of the most substantial performance gaps in recent decades. Gold's value soared to a new record, surpassing $2,200 per ounce, whereas the PHLX Gold/Silver Index, representative of gold-mining companies, has not seen growth in the same period. This trend suggests that after a phase where gold shares lag behind physical gold, gold-mining shares usually bounce back, outperforming rather than gold bullion's performance declining. Therefore, the historical pattern indicates potential for gold-mining shares to offer lucrative returns in the wake of their underperformance compared to physical gold.
Goldman Predicts Booming Commodities Market as Interest Rates Dip
Goldman Sachs forecasts a positive returns for commodities in 2024, anticipating a 15% return driven by global central banks lowering interest rates. This monetary policy shift aims to bolster both industrial and consumer demand. The firm highlights potential in copper, aluminum, gold, and oil, emphasizing selective investment due to non-uniform gains across all commodities. The optimism stems from a notable first-quarter performance, with commodities like crude oil strengthening, gold reaching new highs, and copper prices surging.
SAXO Bank: Gold is Ready to Rise
Will 2024 be the year of the metals? Gold has just reached a fresh record high driven by strong retail demand and record central bank buying. With the prospect for rate cuts in the US later this year, further strength could lie ahead.
Gold Poised for Stellar Rise Amid Central Bank Buying and Fed Rate Cuts
Central banks' increasing interest in gold, alongside anticipated Federal Reserve rate cuts, are fueling expectations for a renewed gold bull run. The combination of strong physical demand, substantial official sector purchases, and the Federal Reserve's dovish stance is predicted to push gold prices to an average of $2,250 per ounce in the next quarter and maintain an annual average of $2,113 per ounce for 2024. With traders and investors currently under-positioned in gold, the expected reduction in interest rates could boost speculative interest and ETF demand, potentially driving prices to exceed $2,300 in the coming six months. Moreover, factors such as central banks' record gold purchases, the desire to hedge against inflation and default risks, and geopolitical tensions are likely to support and even amplify the price rally.
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