Gold bulls eye more record highs despite lightning gains Gold bars are pictured at the plant of gold and silver refiner and bar manufacturer Argor-Heraeus in Mendrisio, Switzerland, July 13, 2022. LONDON, April 5 (Reuters) – An upgraded gold price forecast for 2024 from Nicky Shiels, head of metals strategy at Swiss gold refinery MKS PAMP, drew an unexpected follow-up question this week from market participants. The enquiry was: “Will or can gold ‘go cocoa’?” Cocoa prices have more than doubled since the start of 2024 due to poor harvests in Ivory Coast and Ghana. Meanwhile, spot gold , a much more global and liquid market, hit record highs on five previous trading sessions as investors jumped in looking for exposure to the metal used to preserve wealth. Gold’s record high at $2,305.04 an ounce hit on Thursday amounts to a gain of 12% since the start of the year. “There is almost zero probability gold can replicate those gains in that amount of time,” Shiels said. While cocoa price growth is driven by supply shortage, the gold market is protected by significant stocks held by individuals and reserves of central banks, which own one-fifth of all the gold ever mined. “One cannot de-stock chocolate bars at the same rate as one can de-stock gold bars,” she said. Her forecast for the 2024 average gold price was raised by $150 to $2,200 an ounce. However, while the market may not exactly “go cocoa”, analysts retain a bullish tone even as technically the market feels ripe for hefty falls due to it being overbought. “It is hard to say where values are going to top out as there are no resistance “signposts” on the charts,” said Marex analyst, Edward Meir. Further out, many analysts expect gold to test new highs once the U.S. Federal Reserve starts cutting key rates triggering demand from investors sitting on the sidelines such as holders of physically-backed gold exchange traded funds (ETFs). “We had previously proposed a $2,400 per ounce price estimate if the Fed cut rates in the first quarter of 2024; we commit to that estimate for this year, even if rate cuts come later,” analysts at BofA said in a note. « Previous Article Next Article » Share This Article Choose Your Platform: Facebook Twitter Google Plus Linkedin Related Posts Why Buy Gold? 11 Reasons to Invest in Physical Gold Bullion READ MORE Concerns Arise Over CPI Data Accuracy with Response Rates Lagging READ MORE Silver items commonly found in the U.S.A READ MORE Markets on Edge: Continuing Coverage of Regional Banking Crisis READ MORE Add a Comment Cancel replyYour email address will not be published. Required fields are marked *Name * Email * Save my name, email, and website in this browser for the next time I comment. Comment