IAMGOLD Corp (IAG)

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JP Morgan - Stephen Jury (Not a goldbug news letter)
Managing Director
Mar 13, 2024
Our outlook on gold

We have a constructive outlook on gold over the next 12 months. We currently expect that the Federal Reserve will begin to cut interest rates in the United States – likely beginning in June, subject to revision. In our opinion this should set the stage for gold appreciation. A persistent theme of geopolitical tension should continue to drive Central Bank reserve diversification. In addition, 2024 will see over 60 countries – representing around half of the world’s population – heading to the polls for national elections. Tragically, two regional conflicts are still ongoing, and these may have an impact on global supply chains.

We look for more Central Banks to add to their buying momentum this year and assume these buyers may be less sensitive to prices. We look for retail ETF investors to come back to the market and begin accumulating gold once again as yields fall. Gold investment is not currently a crowded position. Investors have been lured by high cash interest rates – and we are particularly interested in this development. Under-owned and under-appreciated investments are often ripe for appreciation. Our current outlook for year-end 2024 is $2,250-2,350.