Gold has completed an extraordinary 2024, reaching numerous record highs and delivering substantial gains despite various market challenges. For more detailed insights on this remarkable year, you can visit the original sourcehere.
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In 2024, substantial global demand played a pivotal role in propelling gold to new heights. According to data from the IndexBox platform, among the main drivers were Chinese investors who, restricted by regulations preventing capital outflow, turned to gold as a safe haven amidst a multi-year real-estate bust. This resulted in a healthy Chinese consumer demand of 308.9t, 174.3t, and 173.4t over the first three quarters, far surpassing the prior-20-quarter average of 215.9t.
Furthermore, central banks continued their substantial gold acquisitions, partly as a hedge against their oversized US dollar reserves which were challenged by geopolitical tensions and the devaluation caused by extensive US government spending. In the first nine months of 2024 alone, China’s overall gold demand was down by 7.9% YoY to 656.6t, and alongside India, which saw an 8.5% YoY increase to 537.0t, contributed significantly to the year’s upswing.
Despite being largely overlooked by American investors, enamored by the booming AI stock sector, gold achieved a remarkable 40% gain by mid-September, with subsequent increases taking it to a 46.8% rise at $2,671 by the end of the period. This defied expectations, given past trends that necessitated American investor participation for such uplegs.
As the year advanced, a modest selloff into mid-November saw prices dip to $2,562, representing an 8.0% pullback. This correction, however, did not traverse the 10% threshold and left the gold market ripe for potential further growth.
Looking forward into 2025, gold’s prospects remain strong, particularly as the US Dollar Index rally might taper off. With the geopolitical landscape potentially supporting further gold investment – such as reactions to proposed tariffs under a potential Trump administration – gold may see renewed interests from diverse investor groups, further aiding steep price increases.
Ultimately, as major global players continue to embrace gold, while US miners also stand primed to benefit, the future looks gilded for this timeless investment asset.