Commerzbank downgraded its gold and silver 2024 price targets as the Fed cuts rates less aggressively
Nguyen said that she sees gold prices rise to $2,100 per troy ounce over the course of this year, which would put the price below December’s all-time high of $2,135. Since late December, the German bank had been expecting the Federal Reserve to cut interest rates aggressively as inflation weakened and economic activity softened. Commerzbank expected interest rates to be cut to 3.50% in the next two years.
While Commerzbank is downgrading its year-end price target, Nguyen said she still sees limited downside for the precious metals. “All in all, we are therefore sticking to our view of a rising gold price this year. Next year, however, the price should stabilize due to the US Federal Reserve's limited scope for interest rate cuts,” she added.
- Commerzbank downgraded its gold and silver 2024 price targets as the Fed cuts rates less aggressivelyGold and silver’s extended consolidation is taking its toll on sentiment as an international bank is lowering its price target for this year.In her latest note on gold, Thu Lan Nguyen, head of research at Commerzbank, said she is lowering her price target for gold by $50. At the same time, the commodity analyst is also lowering her year-end target for silver.