Amid its sustained rally beyond the $2,000 mark, the Gold price is set to surpass record highs in 2024. Indeed, the precious metal is set to match the highs that it saw in 2020, as it has reached heights of $2,038.45 this week. Subsequently, new highs are not out of the question as 2023 comes to a close.
Gold has long been perceived for its value against inflationary concerns. Therefore, as the United States’ economic situation continues to develop, the rising investment interest in gold has increased. Now, many are expecting that increase to continue well into next year.
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Gold Price to Reach New Highs in 2024?
The past year has seen a very fragile US economy attempt to fight off inflation. Indeed, the Federal Reserve has embraced a tightening campaign that saw them raise interest rates for a year straight. Subsequently, that activity had a major effect on certain markets, with gold certainly leading the way.
Indeed, following its performance this year, the gold price could be set to surpass record highs in 2024. Specifically, the precious metal could be well on its way to its greatest performance since 2020. Especially as inflation is still at 2%, and well above the hope of the Fed.
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Conversely, the price of gold is still rather volatile. In September, prices fell below $1,850. However, November saw prices exceed $2,000. Yet, WisdomTree still predicts that the asset could surpass its all-time high if economic conditions worsen. Moreover, they also predict a 2.60% inflation rate in Q3 of 2024, pushing up demand and the price of the asset.
Additionally, the head of commodities and macroeconomic research at WisdomTree, Nitesh Shah, noted this in their breakdown. “In other scenarios of the world where economic conditions deteriorate faster and there is a greater demand for defensive assets, we could see gold prices rising even further.”
The economic status of the United States, coupled with geopolitical tension could bring about a positive performance for gold. Although they could have terrible impacts on the overall economy, the presence and place of gold in many investment portfolios will see it reap the benefits of that.