According to economists at ANZ Bank, investment demand for gold has exhibited a divergence from price movements for over a year. They assert that strategic investment inflows will play a pivotal role in determining the trajectory of gold prices moving forward.
The economists highlight the significance of a less crowded investment landscape in gold, suggesting substantial upside potential under such conditions. They note that despite record highs in equity markets and escalating geopolitical tensions, investors are increasingly inclined to incorporate gold into their portfolios.
ANZ Bank’s analysis indicates that a less saturated investment environment for gold offers considerable room for expanding gold holdings. They believe that this dynamic could contribute significantly to driving gold prices upwards.
In their estimation, investment demand is anticipated to account for nearly 460 tonnes of gold to maintain market equilibrium in 2024. This projection underscores the pivotal role that investment flows are expected to play in shaping the gold market in the coming year.
