Gold price to rise to $2,100 per ounce in Q1 2024, Zhaojin Mining top pick – Morgan Stanley 

 

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Morgan Stanley anticipated that the US Federal Reserve will introduce the first rate cut in March 2024, and forecast the gold price to elevate to $2,100 per ounce in the first quarter of 2024, from the current level of $1,900 per ounce, the bank stated in a report.

While the strengthen of the US dollar will add some pressure on gold, it should be noted that gold and the dollar can rebound simutaneously amid high market demand for safe havens, it said. 

The bank’s estimates showed that the average gold price will reach $1,988 per ounce this year, rising by 11% from a year earlier, while the average price will rise 3% to $2,050 next year.

Given the rising gold prices, Morgan Stanley selected China’s Zhaojin Mining (01818.HK) as the top pick for the sector, with its H-share target price raised from HK$12.5 to HK$12.9, with an Equal-weight rating. 

SD GOLD (01787.HK) was also rated at Equalweight, with its H-share target price raised slightly from HK$16.1 to HK$16.6.