This high gold price is possible over the next 12 to 18 months. There are three possible catalysts. The first is aggressive gold buying by central banks, which could drive the price up further. Secondly, persistent stagflation (a rising inflation rate, slowing economic growth and rising unemployment) and thirdly, a global recession could have a price-driving effect.

If this were to happen, the price of gold would be around 50 percent higher than it is today. The so-called de-dollarization of the central banks of the emerging markets has a special role to play here. The US dollar could increasingly slide into a crisis of confidence, prompting central banks to buy even more gold. This development could then even replace jewelry consumption as the main driver of gold demand.

Last year, central banks’ appetite for gold rose to record levels. The central banks of China and Russia, as well as those of India, Turkey and Brazil, are particularly eager buyers. Opinions differ as to whether there will actually be a severe recession. In any case, such a recession would fuel the price of the precious metal. Citi analysts believe that a new gold record price is possible by the end of 2024.

The Fed’s key interest rate is still the highest it has been since 2001. If interest rates fall, gold will become more attractive for investors. If you want to bet on gold as a safe haven, you can do so not only with physical gold, but also with the shares of gold companies such as OceanaGold or Osisko Development.

OceanaGold – https://www.commodity-tv.com/ondemand/companies/profil/oceanagold-corp/ – successfully produces gold and copper in four active mines (USA, Philippines, New Zealand).

Osisko Development – https://www.commodity-tv.com/ondemand/companies/profil/osisko-development-corp/ – is already producing. The projects are located in Mexico, Canada and the USA. The aim is to become a medium-sized gold producer.

Current company information and press releases from Osisko Development (- https://www.resource-capital.ch/en/companies/osisko-development-corp/ -) and OceanaGold (- https://www.resource-capital.ch/en/companies/oceanagold-corp/ -).

In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.

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