ING Reveals Gold Predictions for Q4 2024: These Levels!

According to ING Commodity Strategist Ewa Manthey, gold prices are expected to peak in the fourth quarter as investors focus on Fed cuts, while ETF inflows and central bank purchases continue to provide support in the geopolitical risk environment.

After consolidation, gold will maintain its upward momentum!

As you follow from Kriptokoin.com, fears of the US entering into a recession have increased. Manthey from ING states that as a result, gold has fallen alongside global stock sales at the beginning of the week. Manthey says, "Gold is usually a safe haven during these types of uncertainties. We have witnessed possible liquidations to meet margin calls in other assets. Therefore, gold was sold sharply on Monday." In this context, the strategist makes the following evaluation:

Looking ahead, we believe that gold needs to rise again due to ongoing geopolitical uncertainties and expectations of a Fed rate cut. Despite Monday's sharp drop, gold has risen by approximately 15% so far this year and has been one of the best-performing commodities of the year, aided by central bank purchases, Asian consumers, and expectations of a Fed rate cut. Thanks to strong demand from central banks and Asian consumers, it reached an all-time high in July. After a consolidation phase, we believe gold will maintain its upward momentum.

The central bank demand will continue to remain strong!

According to Manthey, gold investors have focused their attention on the scale and timing of the expected interest rate cuts by the Fed. The strategist says, "Since July, the Fed has kept the key policy rate in the range of 5.25 to 5.5 percent. This is the highest level in over twenty years. Our U.S. economist thinks that after a 50 basis point cut in September, a series of 25 basis point moves will bring us back to around a 3.5 percent Fed funds rate until next summer." Central bank purchases remained relatively strong in June. Data from the World Gold Council shows a net purchase of 12 tons throughout the month. In this context, the strategist makes the following statement:

Once again, emerging market central banks led the purchases in June. Uzbekistan and India added 9 tons to their gold reserves throughout the month. However, there has been a slowdown in gold purchases in China in recent months. The People's Bank of China did not add gold to its reserves for the third consecutive month in July. Despite lower gross purchases and sales compared to the same period last year, buying power continues this year. Central banks added 1,037 tons of gold in 2023. This is the second highest annual purchase in history, following the record level of 1,082 tons in 2022. However, due to the current economic climate and geopolitical tensions, and with prices falling from record levels, we expect central bank demand to remain strong.

ING's gold price forecasts for the 4th quarter of 2024

ING predicts that gold will reach its peak in the fourth quarter as geopolitics continue to influence price movements. The strategist says, 'The war in Ukraine and the Middle East, as well as the tension between the US and China, indicates that the safe haven demand will continue to support gold prices in the short and medium term. The US presidential elections in November and the long-awaited Fed interest rate cut will also contribute to the upward momentum of gold until the end of the year. Central banks are also expected to continue increasing their assets, which will provide support.'

ING predicts that gold will average $2,380 in the third quarter. Additionally, the strategist anticipates that prices will peak at $2,450 in the fourth quarter. In this context, the strategist states that the annual average price will be $2,301.

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