The gold market is set to continue its impressive rally through the remainder of 2024, with traders and industry experts predicting the precious metal will maintain its upward momentum. However, the $3,000 per ounce mark may prove just out of reach for the time being.
Spot gold is currently trading around $2,300 per ounce, having hit a record high of $2,449.89 on May 20 and gaining over 11% so far this year. Investors have flocked to gold, driven by expectations of monetary easing, geopolitical tensions, and most notably, central bank purchases led by China.
Ruth Crowell, CEO of the London Bullion Market Association, noted that China and other major economies have been increasing their gold reserves due to currency depreciation, geopolitical risks, and economic challenges. “I think gold is going to be of interest for some time,” she said.
StoneX’s Amar Singh, Head of Metals – Asia Pacific and Middle East, expects gold prices to reach $2,600 – $2,700 “very easily this year” on the back of strong physical demand, though he has not yet seen significant retail investment demand from the U.S.
While the fundamental case for gold remains firmly in place, with bullion traditionally seen as a hedge against risks, analysts caution that the possibility of the precious metal surpassing the $3,000 per ounce mark looks remote at this stage.
Nikos Kavalis, managing director at Metals Focus, said, “It’s not a case of some particular factor holding back gold but rather that $3,000 would mean another 30% from here, which is quite a lot given we have already had some hefty gains.”
Nonetheless, the gold rush is expected to endure through 2024, buoyed by factors such as central bank purchases, geopolitical tensions, and investor appetite for the safe-haven asset.