Gold prices rose sharply on Friday (17 January) after recent US inflation data sparked expectations that the Federal Reserve could cut interest rates this year. According to the World Bank's outlook group, gold prices could rise by 8% this year.
Spot gold rose 1.58% to $2,414.50 an ounce.
(Source: FX168)
Gold prices rose for the second straight week after hitting a one-month high on Thursday.
(Source: Reuters)
Frank Watson, market analyst at Kinesis Money, said: "Signs that inflation may slow raise the likelihood of rate cuts in the coming months, which tends to support gold and silver prices. ”
World Bank forecast: Precious metals will soar 8% annually
According to the World Bank's outlook group, gold prices will continue to rise, with geopolitical crises and emerging market demand providing upside risks, while silver and platinum prices will also rise.
"The World Bank's precious metals price index rose 9% in April 2024, continuing the upward trend seen in the first quarter," economists and analysts from the World Bank's outlook group wrote in a recent article. Platinum prices also rebounded during the month. They added that the price spike was caused by escalating geopolitical tensions.
The World Bank expects the index to grow by 8% year-on-year in 2024. "Stronger demand for gold from emerging market and developing economies (EMDEs) and heightened geopolitical uncertainty are the main upside price risks," they said, "and conversely, sluggish industrial activity in major economies could weaken demand for silver and platinum, leading to lower prices." ”
(Image source: Kitco)
The World Bank noted that the gold price reached a nominal all-time high of $2,311 an ounce in April 2024, continuing the 7% quarterly increase in the first quarter of 2024, which is another continuation of the upward trend since 2020.
"Gold prices are expected to rise 8% in 2024 compared to 2023, supported by continued strong central bank demand from emerging market and developing economies, retail investment (jewellery is seen as quasi-investment in some countries) and strong safe-haven demand."
When it comes to silver, World Bank analysts note that the price of this silver rose 12% in April from the previous month, after it maintained a steady and less dramatic move in the first quarter. "The recent rise in silver prices is mainly due to the resumption of industrial activity and a number of factors affecting the price of gold, which has brought the gold-to-silver ratio close to its 10-year average," they said.
(Image source: Kitco)
The World Bank expects silver demand to remain modest this year, "benefiting from the growth in industrial demand – from the expansion of vehicle electrification and the development of renewable energy infrastructure – as well as the expected recovery in demand for jewelry and silverware." ”
"Increased mine production in major silver mining regions such as Chile, Mexico and Russia is expected to support supply growth in 2024," they wrote, "and silver prices are expected to rise by 7% in 2024 compared to 2023 and another 4% in 2025." ”
(Image source: Kitco)
Platinum prices also rebounded in April, albeit by 3.5%, but to a lesser extent than silver, as the precious metal fell slightly in the first quarter.
"After a 25% surge in demand in 2023, platinum demand is expected to stabilize in 2024," the World Bank said. "This expected deceleration was caused by modest growth in demand for the automotive industry and jewellery, which together accounted for about 60% of global platinum demand, while contractions in industrial demand – largely driven by sectors such as glass fibre and petrochemicals – offset this growth."
(Image source: Kitco)
"Nonetheless, reduced production and reduced secondary (recycling) supply in Russia and South Africa, the world's two largest platinum producers, will support a 4% increase in platinum prices in 2024 and a further 5% in 2025."
(Image source: Kitco) #黄金#