In a newly published forecast, BCA Research - a market research company founded in 1949 in Canada - said that gold is still an important hedge against inflation and financial market risks, and that gold is still an important hedge against inflation and financial market risks. This precious type will continue to increase in price this year.

Analysts at BCA Research expect gold prices to rise to $2,200, equivalent to about 10% from current prices. While many investors monitor the actions of the US Federal Reserve (Fed) for signs of easing, BCA believes that there are many other factors supporting the increase in gold prices.

The Fed may reduce interest rates more slowly than market expectations. Currently, the central bank has signaled three potential rate cuts this year, while CME FedWatch shows the market expects interest rates to fall below 4% by year-end.

At the same time, BCA does not expect the US economy to enter a recession. This market research company based in Montreal (Canada) believes that reduced inflationary pressure and stable wages will boost real consumption, supporting economic activity.

"Workers' wages have increased after the pandemic. As a result, households' purchasing power will increase," analysts said. This will continue in the short term, even as unemployment numbers are returning to pre-pandemic levels.

Although inflation is expected to decrease, BCA Research believes that it is difficult to achieve the Fed's 2% target. This factor also makes gold an attractive long-term inflation hedge. At the same time, analysts say rising government debt, geopolitical uncertainty and changing globalization trends will fuel inflation in the long term.

"Rising public debt creates inflationary risks in the medium to long term. The same goes for global economic fragmentation as it will weaken well-developed supply chains and cause poor resource allocation more effective", BCA Research assessed.

Analysts also predict that geopolitical instability will support gold prices - the preferred "safe haven" of many investors. The green energy transition and the race to secure raw materials to meet long-term goals will escalate geopolitical tensions globally.

This year's gold price could set a new record, which is also the prediction of many experts, when the US reduces interest rates, geopolitics becomes tense and central banks continue to buy.

JP Morgan predicts that gold prices will "speed up" in the middle of this year, possibly reaching 2,300 USD thanks to expectations of reduced interest rates. UBS believes that the price will reach 2,150 USD at the end of the year if countries actually reduce interest rates.

In its 2024 outlook report, the World Gold Council (WGC) forecasts that if interest rates decrease by 75-100 basis points (0.75-1%), gold prices will increase by 4%.

Minh Son