DE - UBS Bullish On Gold Silver In 2024; Global Mining Supply Market Hits New Highs; South Africa's President Calls For End To Abuses In Mining Metals Sectors | Benzinga
Top Mining Stories For Feb. 5, 2024:
1. UBS projects a bull market for gold and silver in 2024, thanks largely to the strong likelihood of the Federal Reserve cutting interest rates.
Of the two metals, it’s gold that enjoys a real moment in the sun here. According to the bank’s strategist Joni Teves, gold is likely to reach $2,200 per ounce by the end of the year. The projection does not come totally out of the blue; rather, it follows on the heels of gold having reached a record $2,100 per ounce at the end of 2023.<.p>
The UBS analyst attributes the impressive forecast to a weaker dollar resulting from lower interest rates. The projection is highly significant not least because of what it suggests about other alternative assets that have done phenomenally well in the new year, such as Bitcoin.
The popular cryptocurrency hit $45,000 last month and is riding high on a pushback against perceived regulatory overreach and the landmark approval of the spot Bitcoin ETF; yet for all its popularity, nothing can replace the cachet of gold or persuade the market as a whole to gravitate to more speculative asset classes subject to boom-and-bust cycles.
Among financial institutions that track gold’s performance, UBS is not alone in making bullish projections for the commodity. JPMorgan also cited lower interest rates, along with real yields, as factors helping drive gold to new heights.
Gregory Shearer, head of base and precious metals strategy at JPMorgan, said: "Across all metals, we have the highest ...