Gold prices will hit $2,000 by the end of the year.
This is the message from JPMorgan Chase economists.
JP Morgan executive director of global commodities research Greg Shearer said in a recent research note that gold prices are projected to average $2,175 per ounce by the fourth quarter of 2024, an 11% jump from the present level.
“We’re in a very prime place where we think gold ownership and long allocation to gold and silver is something that acts as both a late cycle diversifier and something that will perform as we look to the next sort of 12, 18 months,” he wrote.
The culprit? The Federal Reserve will start cutting interest rates by the middle of 2024.
This would help explain why money managers have bolstered their net-long positions in gold futures this year, according to the Commodity Futures Trading Commission (CFTC).
At the time of this writing, the front-month gold contract is trading around $1,975. However, the December futures contract topped $2,000 on Monday.
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