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Gold Sector - Upward revision to gold price forecast (Petra 22/8/24)

Gold hit a new high of US$2,531/oz this week, taking gains this year to 22% (+35% over 1-year, Figure 1). Increasing concern about mounting US debt/deficits, expectations of easing interest rates from as early as Sept., strong central bank purchases and growing financial investment demand, plus ongoing conflicts and uncertainty in the Middle East, Ukraine and China/Taiwan are combining to create a positive environment for the yellow metal.

We believe that investors will continue to look to gold for risk diversification and as a currency alternative to the USD. On the back of this thematic, we have upwardly revised our forecast 2H CY2024-CY2028 average US$ gold price by 8% to US$2,347/oz (prev. US$2,175/oz). Our revised long-term (post CY28) gold price is US$2,000/oz (+8% on prev. US$1,850/oz).

RED: Target price revised up 13% to A$0.51/sh.