World gold prices could reach $2,400 per ounce next year.

Gold prices are expected to have a breakthrough next year. Illustration photo: Phan Anh

In a recent interview, Philip Petursson, Director of Investment Strategy at IG Wealth Management, stated that even at $2,000 per ounce, gold still has the potential for significant price appreciation. Specifically, he predicted a substantial increase in gold prices over the next year.

The analyst stated: “Gold prices have been weighed down by the strength of the US dollar for much of this year. They tend to be inversely correlated, so when the US dollar strengthens, gold prices tend to weaken a bit. Now, if the US dollar begins a downward trend in 2024 as we predict, that would be positive for gold prices.”

IG estimates that gold is currently undervalued by as much as 20%. “Once it firmly breaks above $2,000 per ounce, we think gold could rise even higher, potentially to $2,400 per ounce,” Petursson stated.

IG Wealth Management expects this bullish scenario to unfold even as US bond yields remain at their highest levels in decades. The firm also expects the US economy to have a "soft landing" and avoid recession.

Mr. Petursson noted: “Looking ahead to 2024, we maintain the view that higher bond yields will continue to generate some volatility in the stock market. However, our economic outlook remains geared toward a soft landing scenario in the United States, and that leads to a more cautious view of the US stock market over the next 12 months. Meanwhile, overall, fixed-income investors will benefit from higher interest rates.”

Source: https://laodong.vn/kinh-doanh/gia-vang-the-gioi-co-the-len-2400-usdounce-trong-nam-toi-1265581.ldo