Gold prices have demonstrated resilience and held steady, despite a backdrop of improving economic data since late December. Typically, positive economic indicators might lead to a decline in demand for safe-haven assets like gold. However, the current trend has been influenced by robust central bank purchases, particularly notable in countries like China and Russia. These purchases contribute to sustained global demand for gold.
While economic data, including inflation in advanced economies, has shown improvement, the increased appetite for gold from central banks has counteracted downward pressure on prices. Reports highlight the growing accumulation of gold reserves by various central banks, providing support to the precious metal.
The National Australia Bank’s economists predict that gold prices will maintain an average of $2,025 in 2024, representing an increase from the 2023 average of around $1,942. This outlook reflects the ongoing significance of central bank activity in influencing gold market dynamics.
