Probability of Gold Surpassing $5,000 Rises
A recent report from State Street Investment Management highlights that the probability of spot gold prices surpassing $5,000 per ounce in 2024 has now exceeded 30%. This projection is largely attributed to the strong price momentum observed in recent months and ongoing geopolitical tensions.
Multiple Drivers for Gold Prices
The report outlines a favorable outlook for gold by 2026, citing rising global debt levels, uncertainty around Federal Reserve policy, and potential financial market volatility as key catalysts. These factors are expected to reshape investor behavior and increase gold's appeal as a safe-haven asset.
Evolving Role of Gold in Investment Portfolios
Analysts suggest that a persistent positive correlation between U.S. equities and bonds could lead investors to seek more liquid alternatives. In this context, gold is likely to gain prominence as a strategic asset for portfolio diversification.
Central Bank Demand Offers Stability
Meanwhile, continued gold purchases by central banks are anticipated to provide a strong underpinning for physical demand. As central banks bolster reserves amid economic uncertainty, gold’s role as a reserve asset remains resilient.