Gold extended a blistering rally to rise above $3,500 an ounce for the first time, as concern that President Donald Trump could fire Federal Reserve Chair Jerome Powell triggered a flight from U.S. stocks, bonds and the dollar.
This public rebuke of JeromePowell comes on top of geopolitical risks, trade tensions and concerns over economic stability – all enflamed by Trump’s tariff onslaught.
Gold hits new all-time high!
Gold has reached an unprecedented milestone, soaring to $3,500 per ounce for the first time, as political and economic uncertainty surrounding President Donald Trump’s criticism of Federal Reserve Chair Jerome Powell shakes global markets.
Investors have flocked to gold as a safe-haven asset, seeking refuge from the volatility triggered by Trump’s public demands for immediate interest rate cuts and threats to dismiss Powell.
Gold’s rapid ascent has been supported by a combination of trade tensions, tariff uncertainties, and geopolitical risks. Its ascent this year suggests that markets have less confidence in the U.S. than ever.
Dollar plummets as gold hits new all-time high!
The U.S. dollar has plummeted to its lowest level since 2023, further fueling gold’s meteoric rise.
Concerns over the Federal Reserve’s independence have eroded confidence in U.S. assets, prompting a flight to bullion-backed exchange-traded funds and central-bank purchases.
Market analysts are divided on whether gold’s rally will sustain its momentum. While some predict further gains, citing the metal’s enduring appeal as a hedge against economic instability, others caution that the recent surge may lead to a temporary pullback.
Regardless, gold’s historic climb underscores its status as a reliable store of value in times of turmoil, solidifying its position as the ultimate safe-haven asset.
Gold has seen a significant rise in 2025
On 1st January 2025, gold was priced at $2,623 per ounce. As of 21st April, 2025, gold has surged to $3,373.70 per ounce.
This marks an increase of $750.70 per ounce, or approximately 29% in just a few months.
One-year gold chart
Gold one-year chart
In April 2024, gold was priced at approximately $2,284 per ounce. As of April 2025, gold has surged to $3,373.70 per ounce. This marks an increase of $1,089.70 per ounce, or roughly 48% in just one year.
Gold has reached a historic milestone, breaking the $3,000 per ounce barrier for the first time in history
This remarkable surge reflects a confluence of global economic uncertainties, geopolitical tensions, and shifting investor sentiment.
The rally has been fueled by a variety of factors. Central banks worldwide have significantly increased their gold reserves, seeking a hedge against inflation and a safeguard from potential economic sanctions.
This trend gained momentum following the freezing of Russian central bank assets in 2022, which underscored the vulnerabilities of holding reserves in foreign currencies.
Additionally, escalating trade tensions and fears of a global recession have driven investors toward safe-haven assets like gold. The U.S. administration’s aggressive tariff policies have amplified market volatility, prompting a flight to stability.
Gold-backed exchange-traded funds (ETFs) have also seen substantial inflows, further bolstering demand.
The psychological significance of crossing the $3,000 mark cannot be understated. It signals a shift in market dynamics, with gold outperforming many traditional asset classes.
Analysts predict that, barring a dramatic change in economic conditions, the upward trajectory may continue, potentially reaching new highs in the coming months.
This milestone underscores gold’s enduring appeal as a store of value in turbulent times, cementing its status as a cornerstone of global financial markets.
While some experts predict gold could reach $3,500 by the third quarter of 2025, others are more optimistic about the $4,000 mark being attainable in the near future.
When it comes to investing, two assets often come to mind: gold and Bitcoin.
Both have their unique advantages and disadvantages, and choosing between them depends on your investment goals, risk tolerance, and market outlook.
Historical performance
Gold has been a reliable store of value for thousands of years. Its price has seen steady growth, with a notable increase of 60% from 2010 to 20241.
During the 1970s inflation crisis, gold rose by 2,300%, showcasing its ability to hedge against inflation. Gold ETFs have grown to around $270 billion in assets under management (AUM) by 2024.
Impressive growth some would say but wait… there’s a new kid on the block.
Bitcoin, on the other hand, is a relatively new asset, introduced in 2009. Despite its short history, Bitcoin has seen explosive growth, surging from $4 in 2011 to over $106,000 in 2024 – a growth of more than 2 million percent.
During the 2020-2024 inflationary cycle, Bitcoin increased by 1,185%, highlighting its potential as an inflation hedge.
Volatility and risk
Gold is known for its stability and long-term value preservation. Its volatility index (VIX) is relatively low, making it a safe haven during economic downturns. Investors with long-term goals often prefer gold for its consistent performance and lower risk.
Bitcoin, however, is highly volatile. Its price can fluctuate dramatically within short periods, making it a riskier investment. While Bitcoin offers the potential for high returns, it also comes with the possibility of significant losses. Investors must be prepared for the market’s ups and downs and have a higher risk tolerance.
Inflation hedging
Both gold and Bitcoin are considered effective hedges against inflation. Gold has a long history of maintaining its value during inflationary periods, making it a trusted asset for wealth preservation.
Bitcoin, as a digital asset, has gained recognition as ‘digital gold’ and is increasingly seen as a viable alternative for hedging against inflation.
Regulatory environment
Gold is a well-established asset with a clear regulatory framework. Central banks worldwide hold significant gold reserves, underscoring its role in financial stability. Bitcoin, however, operates in a relatively new and evolving regulatory landscape.
While some countries have embraced Bitcoin, others have imposed restrictions or bans, adding an element of uncertainty to its future.
Accessibility and liquidity
Gold is a tangible asset that can be easily bought and sold. It is widely accessible and has a liquid market, allowing investors to enter and exit positions with ease.
Bitcoin, while also highly liquid, requires a digital wallet and an understanding of cryptocurrency exchanges. Its accessibility can be limited by regulatory and technological barriers.
Is there a conclusion?
Choosing between gold and Bitcoin depends on your investment goals and risk tolerance. Gold offers stability, long-term value preservation, and a lower risk profile, making it suitable for conservative investors.
Bitcoin, with its potential for high returns and inflation hedging, appeals to those with a higher risk tolerance and a belief in the future of digital assets.
Ultimately, diversifying your portfolio with both assets can provide a balanced approach, combining the stability of gold with the growth potential of Bitcoin.
Gold prices have surged to unprecedented levels in 2025, driven by robust demand and a series of global economic uncertainties.
As of early February, gold futures traded on the New York Mercantile Exchange reached a record high of $2,875 per ounce, marking a significant milestone in the precious metal’s market performance.
Stable safe haven during unstable times
The surge in gold prices can be attributed to several factors. Firstly, geopolitical tensions and economic instability have prompted investors to seek safe-haven assets. Gold, with its historical reputation as a store of value, has become a preferred choice for those looking to hedge against market volatility and inflation.
Central banks
Central banks have also played a crucial role in driving up gold prices. In 2024, global central banks added a record amount of gold to their reserves, with purchases surpassing 1,000 tons for the third consecutive year.
This trend has continued into 2025, with countries like Poland, Turkey, and India leading the way in increasing their gold holdings.
Investment demand for gold has seen a significant uptick as well. Gold exchange-traded funds (ETFs) and bars and coins have experienced strong demand, particularly from investors in China and India.
The reduction of gold import duties in India and economic uncertainties in China have further fueled this demand.
Resistance?
Despite the positive momentum, analysts caution that gold prices could face resistance levels and potential pullbacks. However, the overall outlook remains bullish, with expectations of continued strong demand and further gains in the coming months.
As the global economy navigates through these uncertain times, gold’s allure as a safe-haven asset is likely to persist, making it a key player in the financial markets.
Gold price one-year chart as of 5th February 2025 (am GMT)
Gold price one-year chart as of 5th February 2025 (am GMT)
Gold prices have fallen to near a two-month low as the dollar strengthens in the wake of Donald Trump’s election victory last week.
This downturn has halted the bullion’s rally, which had achieved a series of record highs over the past year. Gold has seen a decline in six of the seven most recent trading sessions following Trump’s win, interrupting its streak of record-breaking milestones over the last twelve months.
On the other hand, Crypto has relished the Trump pump with Bitcoin and many altcoins setting new all-time highs!
Gold price charts – 3 month and one-year snapshot as of: 15th November 2024 (08:10 GMT)
Gold continues on its path to new highs touching $2740 on 21st October 2024
In 2024, gold experienced a surge of over 35%, reaching new record highs.
This increase was propelled by the anticipation of additional Federal Reserve rate reductions following a half-percentage-point cut in September 2024, coupled with persistent geopolitical uncertainties stretching from Europe to the Middle East.
Delegates at the London Bullion Market Association‘s annual meeting earlier this week predicted that gold prices could reach $2,941 per troy ounce in the next 12 months.
As investors continue to seek out a safe haven for their money, the price of gold will remain elevated.
Gold price one year chart – price snapshot as of: 21st October 2024 (08:52 BST)
Gold price one year chart – price snapshot as of: 21st October 2024 (08:52 BST)
Gold, which yields no interest in its own right, tends to gain in value when interest rates are cut and when geopolitical tensions heat up.
Gold prices have soared to unprecedented levels, reaching a new all-time high of $2,585 per ounce
This surge is driven by a mixture of economic and geopolitical factors that have heightened investor interest in the precious metal.
One of the primary catalysts for this rise is the anticipation of a significant interest rate cut by the U.S. Federal Reserve. Recent economic data indicating a slowdown in the U.S. economy has led to expectations of monetary easing, which in turn has weakened the dollar. As a result, gold, which is priced in dollars, has become more attractive to investors seeking a safe haven.
In addition to economic factors, ongoing geopolitical tensions and persistent inflation concerns have further bolstered gold’s appeal. With inflation eroding the value of fiat currencies, investors are turning to gold as a hedge against currency devaluation. The metal’s historical role as a reliable store of value during times of uncertainty continues to drive demand.
Market analysts are now speculating whether gold could reach the $3,000 mark, given the current trajectory and market conditions. As the global economic landscape remains volatile, gold’s allure as a safe-haven asset is likely to persist, potentially pushing prices even higher in the coming months.
Falling commodity prices can be a signal of economic trouble ahead
When commodity prices drop, it often reflects a decrease in demand for raw materials, which can be a sign of slowing economic activity. For instance, the recent decline in copper prices is seen as a potential indicator of economic slowdown.
Sugar, cotton, soybean, oil and iron ore are some examples where demand has fallen during this year.
However, it’s important to consider other factors as well. The global economic slowdown has reduced demand for energy, minerals, and agricultural products. While this trend is evident in many countries, the U.S. economy has shown some resilience.
So, while falling commodity prices can be a warning sign, they are just one piece of the puzzle. It’s essential to look at a broader range of economic indicators to get a complete picture.
Gold has been a popular investment for centuries. The allure of gold endures in today’s varied financial environment. We will delve into the advantages and disadvantages of investing in gold, as well as the different methods by which you can incorporate this valuable metal into your investment portfolio.
Pros of investing in gold
Protection against market downturns
Gold is viewed as a safe-haven asset. In times of market crashes or economic instability, investors tend to turn to gold to protect their savings and investments. For example, during the financial crisis of 2008, the price of gold soared by more than 100%, contrasting sharply with the losses experienced by other assets.
One year gold price chart as of 26th July 2024
One year gold price chart as of 26th July 2024
Inflation hedge
As inflation increases, the purchasing power of the dollar diminishes. During periods of high inflation, gold often appreciates, offering a potential return for investors.
Diversification
Diversifying an investment portfolio across various assets can help in minimizing losses. Gold, which usually has a low correlation with stocks and bonds, can bolster diversification and diminish overall risk.
Cons of investing in gold
No income generation
In contrast to stocks, which distribute dividends, or bonds, which accrue interest and can appreciate (or depreciate) in value, gold does not produce income. It’s worth is dependent entirely on its appreciation in price.
Additional costs
Owning and storing physical gold involves various expenses. These include transportation costs, storage fees, and insurance, especially if the gold is kept at home.
Ways to invest in gold
Physical gold
You can buy gold bars or coins. Owning physical gold provides tangible ownership and is a classic tried and tested way to invest.
Gold Mining Stocks
Investing in shares of gold mining companies can be a strategic move, as these stocks are impacted by gold prices and the operational performance of the mines.
Gold Exchange-Traded Funds (ETFs)
ETFs track the price of gold. They’re an efficient way to invest without holding physical gold.
Gold mutual funds
These funds aggregate investors’ capital to invest in assets related to gold.
Options and futures contracts
For more advanced investors, trading gold options and futures can provide exposure to price movements.
Conclusion
Gold can be a valuable addition to your investment strategy, especially for long-term goals. Consider your risk tolerance, financial objectives, and the role gold plays in diversifying your portfolio. Remember that while gold has held its value over time, it’s not a guaranteed path to wealth. As with any investment, thorough research and a well-thought-out approach are essential.
Gold prices climbed to $2,482 per ounce, hitting an all-time high.
Gold prices continued to peak at new record highs Tuesday and Wednesday 15th and 16th July 2024.
On Monday 15th July 2024, Powell reportedly said the Fed won’t wait for inflation to reach the central bank’s 2% target before it begins cutting, due to the ‘lag’ in policy effects. He reportedly said the Fed is looking for ‘greater confidence’ that inflation will return to the 2% level. The monthly inflation rate dipped in June 2024 – the first time in over four years.
The price increase has been aided by encouraging comments from the Federal Reserve that it will now more likely cut interest rates in September 2024 following comments from Fed Chair Jerome Powell.
And that has given market investors and traders more confidence. According to the CME FedWatch tool, traders are convinced the FOMC will cut rates by September 2024.
As interest rates fall, gold usually becomes more appealing compared to fixed-income assets such as bonds and general savings accounts.
The shimmering appeal of gold has enchanted humans for ages, yet beneath its radiant exterior, miners face escalating challenges.
According to the World Gold Council, the gold mining sector is finding it increasingly difficult to maintain production growth as the reserves of this precious metal become scarcer.
Depletion
Discovering new gold deposits is becoming increasingly challenging as many potential areas have already been scouted, leaving limited unexplored territories. Large-scale gold mining requires extensive exploration and development, often spanning 10 to 20 years before a mine becomes operational.
Exploration
Approximately 10% of global gold discoveries produce enough metal for mining operations. The success rates for exploration are quite low, and the chances of a discovery advancing to the stage of mine development are minimal.
Production
Despite record first-quarter mine production in 2024, the overall trend is concerning. Since around 2016-2018, global gold production has plateaued, with no sustained growth.
In 2023, mine production increased by a mere 0.5% compared to the previous year. The growth rates have steadily declined over the past decade.
Reserves
Globally, around 187,000 metric tons of gold have been extracted. China, South Africa, and Australia are at the forefront of production. The United States Geological Survey estimates that there are approximately 57,000 tonnes of minable gold reserves remaining.
Regulation
The process of obtaining government permits has grown increasingly difficult, with bureaucratic procedures causing delays in mining operations. Additionally, remote mining projects necessitate infrastructure such as roads, power, and water, which adds to the costs and complexity.
In summary, the glittering seams of gold are thinning. Miners grapple with scarcity, regulatory hurdles, and the diminishing promise of new discoveries.
As we dig deeper, the quest for gold becomes a delicate balance between ambition and reality.
The demand for diamonds has declined as its allure fades in a key consumer market, China.
“Diamonds don’t really fit in anymore despite the strong legacy of De Beers under Anglo,” independent diamond industry analyst Paul Zimnisky reportedly said.
According to Zimnisky’s rough diamond index, diamond prices have decreased by 5.7% this year, marking a decline of over 30% from their peak in 2022.
Lab-grown diamonds, potentially up to 85% less expensive than natural ones, are created in a controlled environment using high pressure and heat to mimic the formation of natural diamonds in the Earth’s mantle.
Sales of lab-grown diamonds have increased from a mere 2% of the global diamond jewellery market in 2017 to 18.4% in 2023, as reported by Zimnisky.
A fall in marriage rates as well as growing popularity for gold and lab-grown gems all drove down Chinese demand for diamonds, according to market research firm Daxue Consulting.
The lifting of pandemic restrictions has led consumers to redirect their spending towards travel experiences rather than diamond products.
The preference for lab-grown diamonds plays a critical role in driving down prices of natural diamonds.
Precious metal prices received a significant uplift on Thursday 16th May 2024 following the release of better-than-expected U.S. inflation data, which increased the likelihood of rate cuts by the Federal Reserve, again.
Gold prices reached their highest point in over three weeks on Thursday too, while silver achieved its highest price in over three years, and platinum ascended to a peak close to its one-year high.
According to strategists in a recent comment, gold prices might soon approach the $2,400 again, silver could rise to as much as $30 per ounce, and platinum has the potential to hit $1,130 per ounce.
Silver price per ounce 16th May 2024 – chart snapshot
Gold price per ounce 17th May 2024 – chart snapshot
Buy gold bars from South Korea’s convenience stores and vending machines
South Korean convenience stores are now the latest attraction for gold enthusiasts. Instead of the typical snacks and beverages, customers can now buy gold bars.
Convenience store gold bars
GS Retail, one of South Korea’s largest convenience store chains, introduced gold bars in vending machines at select locations in September 2023. These machines offer five different sizes, ranging from a tiny 0.13-ounce bar to a bigger 1.3-ounce bar.
The most sought-after option is the diminutive 0.13-ounce gold bar, with a price tag of approximately $225. It’s the younger demographic – individuals in their twenty’s and thirty’s – who are eagerly acquiring these lustrous assets. They possibly view gold as a secure refuge in the face of worldwide inflationary pressures and heightened global geopolitical tensions.
GS Retail has reported total sales of gold bars amounting to $19 million in the past nine months, concluding in May. The rising popularity of these bars has led the company to increase the number of stores offering them, aiming to reach 50 locations by the end of the year.
CU collaboration
In a competitive move, CU, the nation’s premier convenience store chain, has partnered with the Korea Minting and Security Printing Corporation (KOMSCO) to sell mini gold bars ranging from 0.1 to 1.87 grams. These diminutive bars have been on sale at CU stores since April.
The pricing of these mini gold bars is tied to fluctuating international gold prices, updated daily. Evidently, even these small quantities of gold are attracting keen interest from young consumers.
Accessibility and fun
The soaring popularity of gold bars in South Korea can be attributed to their accessibility. With convenience stores at every corner, purchasing gold has become as simple as walking in and making a selection.
A representative from Inha University reportedly noted that while some may purchase gold bars as a serious investment, others might buy them for the novelty and ease of access. Imagine the allure of picking up a gold bar along with your daily groceries.
To sum up, convenience stores in South Korea have become modern-day treasure chests, where gold bars are sold next to daily necessities. Whether for investment purposes or for a bit of indulgence, these shiny objects are creating a buzz in the country known for K-pop and kimchi.
So, next time you visit a Korean convenience store, don’t miss the chance to check out the shiny vending machine – it could present a golden opportunity.
Technical analysis indicates that the risk trends towards the upside, with indicators showing overbought conditions and prices rising above moving averages.
However, it’s crucial to remember that markets are subject to change and can be affected by various factors, including geopolitical risks and economic data.
Recent figures indicate that the U.S. Producer Price Index (PPI) increased less than anticipated, which may influence monetary policy decisions and, as a result, the price of gold. Furthermore, the European Central Bank’s (ECB) choice to keep its monetary policy unchanged could lead to a rate reduction next summer, potentially affecting gold prices as well.
Although the present technical perspective suggests a possible continued rise, market fluctuations can occur due to unexpected events or changes in investor sentiment. Consequently, while gold may not face an immediate decline, it is advisable for investors to remain informed and take into account both technical and fundamental aspects when evaluating market trends.
The precious metal has reached consecutive record highs this year, including a peak on Thursday 4th April 2024.
The gold price surpassed $2,300 before slightly retracting. By early Friday, it was trading at approximately $2,278 per ounce.
According to some analysts, geopolitical and structural factors are setting gold on a trajectory to reach $2,600 per ounce within the next year.
The catalysts for its ascent and the potential for further increases in the near to medium term are widely debated among investors, particularly as the stock market continues to post strong gains.
Gold price over three months 2024
Gold price over three months 2024
The anticipation of interest rate reductions and central bank acquisitions has been instrumental in propelling the rally in recent months.
If the Fed were to indicate higher interest rates in its latest FOMC meeting, then gold and other assets will likely fall.
U.S. gold futures rose more than 2% to trade at around $2,285
Gold prices continued their ascent, reaching a new record high on Monday 1st April 2024, driven by expectations of U.S. interest rate cuts and the metal’s status as a safe-haven asset.
Gold typically has an inverse relationship with interest rates. When interest rates decrease, gold becomes more attractive relative to fixed-income assets like bonds, which tend to offer lower returns in a low-interest-rate environment.
The surge in gold prices continues, reaching a new peak on Thursday 21st March 2024, with predictions of further increases as central banks around the world persist in acquiring significant amounts of bullion.
Some analysts believe the gold price could climb as high as $2300 per ounce in the latter half of 2024, particularly if the U.S. Federal Reserve lowers interest rates as anticipated. Currently, gold reached around $2209 on Thursday morning 21st March 2024.
Gold price movement over 1 month
Gold price movement over 1 month
Typically, gold prices have an inverse correlation with interest rates. When interest rates fall, gold becomes more attractive than fixed-income investments like bonds, which offer lower returns when rates are low.
Gold futures for April settled at $2126 per ounce, the highest-level going back to the *contract’s creation in 1974.
Analysts suggest that, adjusting for inflation, gold set an all-time high of approximately $3200 in 1980 and bodes well for big gold increases to come in the future.
Why is gold going up?
The outlook for interest rates. The Federal Reserve is expected to cut rates in 2024 to further stimulate the economy as the inflation fight comes to an end. Lower interest rates make gold more attractive as an alternative asset that does not pay any income.
The geopolitical and economic uncertainty. The U.S.-China trade and political tensions, the conflicts in the Middle East, the Russia/Ukraine war, other conflicts around the world and the upcoming U.S. presidential election are all sources of risk and volatility for the global markets. Investors seek gold as a safe haven asset that can preserve wealth and hedge against inflation.
The supply and demand dynamics. The demand for gold has been rising from central banks, investors, and consumers, especially in China and India, the world’s largest gold consumers. The supply of gold, on the other hand, has been constrained by the pandemic-related disruptions, environmental regulations, and declining ore grades.
Gold price as at 08:20 GMT 5th March 2024 in U.S. dollars per ounce
Gold price per ounce as at 08:20 GMT 5th March 2024in U.S. dollars
The above are some of the reasons why the price of gold is climbing to touch an all-time high. However, the future performance of gold may depend on how the economic and political situation evolves, as well as the market sentiment and expectations.
Gold is a complex and dynamic asset that can be influenced by many factors, both fundamental and psychological.
*Gold contract creation 1974
The gold futures contract for April 1974 was the first gold contract to be traded on the U.S. futures market, and it settled at $126.30 per ounce on its first day of trading. The contract was created after the U.S. ended the gold standard in 1971 and allowed the price of gold to fluctuate according to markets.
Gold demand hit record highs in 2023 on the back of persistent geopolitical tensions and continued weakness in some world economies, particularly China according to the World Gold Council.
Total gold demand stood at 4,899 tons in 2023 compared to 4,741 tons in 2022. Gold purchases from central banks led to last year’s surge, with purchases exceeding 1,000 tons for two consecutive years.
Prices reached an all-time high of around $2,135 an ounce in December 2023 as central banks and retail buyers increased their gold investments.
Carats at Costco
Buyers have many outlets from which to make their gold purchases. Costco recently reported selling over $100 million worth of gold bars in the final quarter of December 2023. Weird to think that we can now buy carats with carrots.
Gold bars for sale at Costco
Gold demand in 2024?
According to some analysts’ gold purchases this year are unlikely to meet 2023 levels, but a fall in inflation could prevent a drastic drop in demand.
When inflation drops significantly, consumers will start to feel ‘better-off’, and this could mitigate some of the drop in demand.
Gold carat
A Gold carat is a unit used to measure the purity of gold, with a carat representing 1/24th part of the whole.
Pure gold is 24 carats, meaning that it is 100% gold with no other metals added. However, gold used for jewellery and other applications is rarely pure, and its purity is measured in carats to determine its value.
The two most significant events for gold demand in 2023 were the collapse of Silicon Valley Bank and the Hamas attack on Israel, the World Gold Council(WGC) said, estimating that geopolitics added between 3% and 6% to gold’s performance over the year.
The WGC estimated that central bank demand added 10% or more to gold’s performance in 2023 and said even if 2024 does not reach the same heights, above-trend buying should still offer an extra boost to gold prices.
The precious metal broke through $2,100 per ounce on Monday 4th December 2023 in intra-day trading, before moderating slightly. Spot gold prices were hovering at around $2,030 per ounce Friday 8th December 2023.
Gold price year to date chart
What is the World Gold Council
The World Gold Council (WGC) is a market development organization for the gold industry. It works across all parts of the industry, from gold mining to investment, with the aim of stimulating and sustaining demand for gold. The council sets standards, strengthens markets, and shapes the global conversation about gold. It was established to promote the use of and demand for gold through marketing, research, and lobbying.
The council includes 33 members, many of which are gold mining companies.
Gold was on a tear overnight 3rd December 2023 ripping to a new all-time intra-day high of 2135.
Gold prices are on course to hit fresh highs in 2024 and could remain above $2,000 levels, analysts predict. Geopolitical uncertainty, a likely weaker U.S. dollar and possible interest rate cuts are cited as the drivers.
Prices of the precious metal have risen for two consecutive months. Gold tends to perform well during periods of economic and geopolitical uncertainty due to its status as a reliable store of value.
Gold price 5 day 2023
Gold soars to a new record December 2023
Gold price 1 month 2023
Gold soars to a new record December 2023
Gold at $2500?
It has been estimated that gold prices could reach up to $2,200 by the end of 2024. Some have even suggested it could go as high as $2,500.
This was the highest level ever recorded since the gold price began to be tracked in 1970.
‘Don’t gain the world and lose your soul; wisdom is better than silver and gold’ – Bob Marley, a reggae singer-songwriter who reminds us of the futility of chasing material things.
Gold prices are on track to rally to all-time highs in 2024 on the back of interest rates increases, inflation fear, looming recessionary concerns and geo-political unrest.
The precious metal is always sought after as a safe haven asset. The gold price hit a record intraday high of $2,072.5 on 7th August 2020, according to data. Some analysts say it could surpass that level and push beyond the record.
Another positive driver for gold is an anticipated peak in Fed rate hiking cycle as well as upcoming topping out of U.S. dollar strength.
Gold usually performs well during uncertain times
Gold tends to perform well in periods of economic uncertainty such as recessions and stagflation due to its status as a reliable store of value.
Gold is often used as a hedge against inflation.
Any type of recessionary move would be positive for gold.
Gold should trade higher when interest rates stop rising and the dollar retreats.
As interest rates rise, demand for gold drops as alternative investments like bonds become more appealing and yield better returns. These may now have peaked.
Gold prices tend to have an inverse relationship with interest rates.
Central bank purchases of gold have been consistently strong, alongside consumer demand for the precious metal.
Gold price year on year
Some analysts are particularly bullish on gold and have called for a target of $2,500 by the end of next year.
There has been a return of physical gold jewellery demand from China and India as both economies improve and retail spending returns.
First quarter gold jewellery demand in China was reported just shy of 200 tons. Analysts project more than 700 tons of jewellery demand from China by the end of 2023.
Chinese retail gold demand has been resilient in 2023 even as consumption of other commodities remained weak.
The target is $2,500 by the end of 2024
Much of this has to do with the fact that recessionary forces may take hold beginning early in 2024.
Let’s watch and see.
NOTE: This is not investment advice!
You must, as always do your own careful research before making an investment.
Gold prices on Monday 27th November 2023 climbed to a more than six-month high as the U.S. dollar weakened.
Investors, it is reported, have placed their bets, suggesting the Federal Reserve is finished with interest rate hikes.
Gold was up around 0.52% at $2,012 per ounce in early afternoon trading (London time). It reached a high of $2,017.82 earlier in the day. Gold futures for December 2023 hit $2,018.90 according to analysts’ data.
The dollar index, a measure of the greenback against major currencies, was 0.13% lower as markets price in a more than 90% chance the Fed will hold rates at its next two meetings.
Analysts at Goldman Sachs reportedly said that the outlook for 2024 is that gold’s ‘shine is returning’.
The potential upside in gold prices will be closely tied to U.S. real rates and dollar moves.
Gold value has been slipping in recent months of 2023 – here are some of the reasons gold prices fluctuate.
Dynamic market
Gold is a precious metal that is often seen as a safe haven investment and a store of value, but it is also subject to the forces of supply and demand, as well as many other factors that affect its price.
The gold market is complex and dynamic, and the price of gold can change quickly and unpredictably. Therefore, it is important to do your own research and analysis before investing in gold or any other asset.
Always do your research! Remember, RESEARCH! RESEARCH! RESEARCH!
Gold price from 2005 – September 2023
The production costs of gold
The cost of mining, refining, and transporting gold can influence the supply and the price of gold. If the production costs are high, the gold miners may reduce their output or increase their selling price, which can affect the market balance and the gold price.
Money supply
The amount of money in circulation can affect the value of the currency and the inflation rate, which in turn can affect the demand and the price of gold. Generally, when the money supply increases, the currency value decreases and the inflation rate increases, which can boost the demand and the price of gold as a hedge.
Geopolitical stability
The political and economic events around the world can affect the market sentiment and the risk appetite of investors, which can influence the demand and the price of gold. Generally, when there is uncertainty, instability, or conflict, investors tend to seek safe-haven assets such as gold, which can increase the demand and the price of gold.
Jewellery and industrial demand
The demand for gold from the jewellery and industrial sectors can affect the market balance and the price of gold. Jewelry is the largest source of gold demand, especially in countries like India and China, where gold is culturally and traditionally valued. Industrial demand for gold comes from its use in various electronic and medical devices, such as smartphones, computers, and dentistry. The changes in the consumer preferences, the income levels, the technological innovations, and the environmental regulations can affect the demand and the price of gold from these sectors.
Gold price 3rd October 2023
Central bank actions
The actions of central banks around the world can affect the supply and the demand of gold, as well as the value of the currency and the interest rates, which can influence the price of gold. Central banks hold gold reserves as part of their foreign exchange assets, and they can buy or sell gold to diversify their portfolios, to manage their liquidity, or to intervene in the currency markets. Central banks can also affect the price of gold indirectly through their monetary policies, such as setting the interest rates, printing money, or buying bonds, which can affect the inflation expectations, the currency value, and the opportunity cost of holding gold.
Strength of the U.S. dollar
Gold is priced in U.S. dollars in most of the major trading exchanges around the world, so when the dollar rises against other currencies, gold becomes more expensive for foreign investors, reducing the demand for it. The U.S. dollar has been strengthening since, partly due to the Federal Reserve’s monetary tightening policy that has raised the interest rates and the attractiveness of U.S. Treasury securities.
Rise of global equities
Gold is often considered a hedge against inflation, currency devaluation, and the failure of other financial assets, but when the stock market is performing well, investors tend to shift their money from gold to equities, seeking higher returns and growth potential. The global stock market has been rallying since the bottom of the Covid-19 pandemic in March 2020, boosted by the roll-out of vaccines, the fiscal stimulus, and the economic recovery.
The Krugerrand
The Krugerrand is a South African coin, first minted on 3rd July 1967
Krugerrand gold coins are a type of bullion coin that were first minted in 1967 by the South African Mint. They are made of 22 karat gold and have a diameter of 32.77 mm and a thickness of 2.84mm. The obverse side features the portrait of Paul Kruger, the former president of the South African Republic, and the reverse side depicts a springbok, the national animal of South Africa. The name ‘krugerrand’ is a combination of ‘Kruger’ and ‘rand’, the currency of South Africa.
Krugerrand gold coins are popular among investors and collectors because they have a high gold content and are easy to trade. They are also legal tender in South Africa, although they do not have a fixed face value.
Decline of inflation expectations
Gold is also seen as a protection against the erosion of purchasing power caused by inflation, but when inflation expectations are low or falling, gold loses some of its appeal as an inflation hedge. The inflation expectations have been declining in recent months, partly due to the easing of supply chain disruptions, the moderation of energy prices, and the fading of the base effects from the previous year.
These are some of the main factors that have been weighing on the gold price lately, but there may be other reasons as well, such as the speculations, the market sentiments, and the geopolitical events that can influence the supply and demand of gold.
