Gold's Resilient Start to 2024: Navigating Strong USD and Rising Treasury Yields

Metals – Gold starts 2024 on a strong footing

Gold held up relatively well in the first trading day of the year, despite a stronger USD and move higher in US treasury yields. Later this week, the market will be watching US data releases, including jobs data that may influence the Fed’s monetary policy path and could add to gold’s upward momentum. We believe that the Fed policy will remain key to the outlook for gold prices in the months ahead. The precious metal is likely to keep on building on last year’s gains (+13% and a first annual gain in three years) and we expect prices to reach record highs this year on the assumption that the Fed starts cutting rates in the second quarter of the year, the dollar weakens, safe-haven demand continues amid global economic uncertainty and central bank buying remains at high levels.