Gold is anticipated to have a promising year in 2024, with investors expecting a price surge. Several factors contribute to this optimism, including a dovish shift in US interest rates, ongoing geopolitical risks, and active central bank buying, following a tumultuous 2023.

Spot gold recorded about 13 per cent annual increase in 2023, marking its most impressive performance since 2020 and currently trading at around $2,070 per ounce. It faced a near-break into uncharted territory in May amid a US regional banking crisis but retraced to nearly $1,800 per ounce by October.

Another rally occurred due to safe-haven demand triggered by the Israel-Hamas conflict.

Investors have turned their attention to the popular SPDR Gold Shares exchange-traded fund, with net inflows exceeding $1 billion in November. 

Analysts project that Middle East conflicts, uncertainties from major elections, and central bank purchases, especially by China, will further enhance the appeal of safe-haven gold in the upcoming year.

Geopolitical developments, particularly in determining the demand for US Dollar assets, are deemed important in the short term.

The rise in US interest rates has been a key factor restraining gold's upside for almost a year, despite heightened global inflation. 

The yellow metal has rebounded from recent lows, surpassing the $2,000 mark and hovering around $2,050. This surge is facilitated by the depreciation of the US Dollar against other currencies and the decline in the Dollar Index. 

A report from Emkay Wealth Management said, “Strong support is anticipated below $2,035. The upward price movement is expected to continue until the first resistance level which is at $ 2,080-2090.