Stock Market Predictions 2024: Analyst Who Correctly Predicted Gold’s Rally Has a New Target for 2024
Dec 28, 2023
Gold prices have witnessed a significant upswing, fueled by a change in the Federal Reserve’s monetary policy and a forecast of economic uncertainty, according to Bruce Kamich, a renowned commodities analyst.
The Federal Reserve, tasked with maintaining low inflation and unemployment levels, introduced easy money policies to counteract the economic ramifications of the COVID-19 pandemic in 2022. However, these policies inadvertently precipitated inflation, compelling the Federal Reserve to augment the Fed Funds Rate. This had a dual effect – bolstering the U.S. dollar and Treasury yields while creating a downward pressure on gold prices.
Fueled by the relative strength of the U.S. dollar and despite its traditional position as an inflation hedge, gold prices suffered, making new positive stock market predictions 2024. However, the Federal Reserve’s measures to control inflation have been successful. The Consumer Price Index (CPI), a frequently used gauge of inflation, plummeted from over 9% in June 2022 to approximately 3% in November. This downward trend alleviated some of the pressure on the Federal Reserve to continue raising rates, leading to a retreat in Treasury yields and the dollar and, subsequently, a resurgence in gold prices.
Currently, it remains uncertain whether inflation will hit the Federal Reserve’s 2% target. However, the impressive progress achieved suggests the Federal Reserve’s next move may be to reduce rates, not increase them. Projections indicate that we may witness as many as three rate reductions in 2024.
Bruce Kamich, with five decades of experience in analyzing commodities using technical analysis, accurately predicted the recent dip in gold prices with new stock market predictions 2024. Following the substantial surge in gold prices, Kamich reevaluated the SPDR Gold ETF’s charts and forecasted a promising future for the precious metal. He predicted a potential upside breakout for gold prices, with a monthly close above $190 likely to trigger further gains. As of December 27, the SPDR Gold Shares ETF closed at $193, paving the way for significantly higher prices. Kamich’s calculations predict a price target in the region of $300.
The Federal Reserve’s projections for 2024 suggest a challenging economic landscape. Anticipated GDP growth is just 1.4%, significantly lower than this year’s 2.6%. Unemployment is also expected to rise slightly, furthering the economic uncertainty. This, combined with the volatility typically associated with Presidential Election years, could potentially drive investors towards safe-haven assets like gold.
Moreover, the SPDR Gold Shares ETF saw more than double growth between 2008 and 2011, during the economic instability following the Great Recession. Gold prices also surged when the Federal Reserve began rate cuts in 2019 and amid the global upheaval caused by the COVID-19 pandemic in 2020. If gold has indeed bottomed out on its “8-year” low, impending rate cuts and investor anxiety could favor gold stocks.
Kamich has recently selected a gold mining stock, Hecla Mining, as a top pick for 2024. Backed by an improved on-balance volume (OBV) line over the past three months and a positive moving average convergence divergence (MACD) oscillator, Hecla Mining’s stock appears poised for growth. Kamich’s forecast predicts a target of $7 per share, marking a 40% increase over its closing price on December 27.