World Gold Council: Gold is waiting for a catalyst, interest rates to fall or become a driving force

The World Gold Council's Medium-Term Outlook 2024 report says gold is performing very well in 2024, up 12% year-on-year, outperforming most major asset classes. Looking ahead, the key question on investors' minds is whether gold's momentum can be sustained or is losing steam. Our analysis suggests that both the global economy and gold appear to be waiting for a catalyst, and for gold, we believe the catalyst could come from a decline in developed market interest rates, which has attracted investment flows from the West, and continued support from global investors looking to hedge against bubble risk amid continued equity complacency and geopolitical tensions. Of course, the outlook for gold is not without risks. A sharp drop in central bank demand or widespread profit-taking among Asian investors could both dent its performance. However, for now, global investors continue to benefit from gold's role in sound asset allocation strategies.