(Kitco News) – Geopolitical turmoil has once again impacted the gold market and safe-haven demand has the potential to drive prices even higher as any potential escalation in Israel’s war with Hamas creates further chaos in the Middle East, according to analysts at the World Bank.
The international financial institution published its latest commodity market outlook Monday, saying they see average gold prices rising 6% in 2024 to $1,900 an ounce, before the market cools the following year.
“The conflict in the Middle East is set to lead to heightened global uncertainty, with substantial implications to gold prices if the conflict escalates. Although the initial impact has so far been moderate, its escalation would exacerbate such uncertainty, which would lead to reduced risk appetite as well as lower consumer and investor confidence,” the analysts said in the report.
The World Bank’s bullish outlook for gold comes as analysts expect the ongoing conflict to broadly impact commodity markets from energy to agriculture.