In 2023, it was one of those rare years when nearly all major asset classes - including equities, bonds, real estate, and gold - rallied. Despite ongoing geopolitical tensions in Eastern Europe and the Middle East, along with broader macroeconomic concerns over a slowdown in the U.S. and abroad, investors and consumers alike proved surprisingly resilient. While the artificial intelligence (AI) helped to drive equity markets sharply higher, bonds caught a bid as yields surged to multi-year highs, and home prices stayed strong to defy calls for a real estate bubble.
Through it all, persistently high inflation and a softening U.S. dollar, coupled with the metal's reputation as a safe-haven investment, propelled gold to new highs. The precious metal's winning run is expected to continue this year, with TD Securities anticipating gold to surpass $2,100 in 2024, while Wells Fargo forecasts gold prices to rally up to $2,200.
