Gold Outshines Silver, But White Metal May Breakout in 2024

In 2023, gold prices increased by 14%, while silver witnessed an 8% rise. Projections for 2024 anticipate a 10-11% rise in gold and a more substantial 12-15% increase in silver.

Although the bullion performed better in 2023, experts suggest that silver may experience a more pronounced upward movement in the coming year. Silver typically moves in tandem with gold, but 2023 saw it undergoing fluctuations, concluding the year with an 8% gain.

Despite geopolitical tensions and factors such as the decline in the US yield curve and the dollar index, silver’s response was less pronounced than gold, renowned for its safe-haven status.

Analysts foresee the potential for a breakout in silver prices in 2024, attributing this to its dual role as a precious and industrial metal. Aprajita Saxena, a research analyst at Trustline, anticipates the conclusion of a three-year consolidation in silver prices by March 2024.

Meanwhile, according to Naveen Mathur, Director of Commodities & Currencies at Anand Rathi Shares and Stock Brokers, the white metal has the potential for double-digit gains in 2024.

Despite predictions of a relatively slow start in the first half of 2024, many experts, including Saxena, believe silver could gradually gain momentum in the latter part of the year.

Saxena initially sees silver trailing gold but expects a turnaround in the latter half of 2024 if crude stabilizes under $75.

Analysts Anticipate Gold Bullish Trend in 2024

Gold is anticipated to shine in 2024, with investors doubling down in the last weeks of December.

The Federal Reserve’s expected shift to a more accommodating monetary policy, a decline in yields, and a weaker dollar index have buoyed gold prices. Experts believe gold has further potential, supported by lower interest rates, falling US dollar, and ongoing geopolitical tensions.

Predictions indicate gold could yield returns of 10-11% in the coming year. Nirpendra Yadav, Senior Commodity Research Analyst at Swastika Investmart, notes that lower interest rates and potential inflation in 2024 create a favorable environment for gold’s upward trajectory.

However, ongoing geopolitical concerns may also propel gold prices to new highs in the coming year, presenting opportunities for traders and investors.