The 2024 Gold Rush Sees $3,000 Just Out of Reach, For Now
Key Takeaways
- Spot gold is trading up more than 11% for 2024
- Demand for the precious metal remains high as a hedge against instability from current geopolitical instability and monetary easing
- Gold has rallied to record highs but odds of a $3,000 per ounce price remain remote
Reuters reported that gold’s meteoric rise in the first half of 2024 is showing signs of continuing through the remainder the year as the preference for the metal remains high. However, the $3,000 per ounce range may remain elusive, industry experts said.
"Physical demand for gold is strong, but we have not seen retail investment demand coming in yet like exchange-traded funds, demand from the United States...“ said Amar Singh, Head of Metals - Asia Pacific and Middle East at StoneX. “I see prices reaching $2,600 - $2,700 very easily this year."
Spot gold is trading around $2,300 per ounce after hitting a record $2,449.89 in May, up more than 11% for the year. Expectations of coming monetary easing, geopolitical tensions in both the Middle East and Europe, and most importantly, purchasing by the Chinese central bank, are the major factors driving investors to this new gold rush.
Global central banks, especially China, are building gold reserves due to currency depreciation and geopolitical and economic risks, with bullion as the preferred hedge against low-interest rates. While many market experts remain bullish on gold, it seems the odds of the precious metal surpassing $3,000 per ounce this year remain remote.
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