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From its role as a safe haven in times of turbulence its reputation as a hedge against inflationGold has consistently proven its value as an investment asset. By adding gold to your investment portfolio, the precious metal can serve as a buffer against market volatility and offer protection against potential losses in other asset classes, which is part of the reason why so many investors are attracted by this.
But The Unique Benefits of Gold to Boost Your Portfolio are not the only attractions, especially at the moment. Since the beginning of the year, the price of gold has been on an upward trajectory, increasing its value by several hundred dollars and breaking numerous price records on its surge. This has prompted even more investors – both beginners and seasoned veterans — to turn their attention to the yellow metal.
How much has the price of gold risen so far this year, and is it likely to continue to climb in the final months of 2024? Below, we explain what you need to know.
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How much has the price of gold increased so far in 2024
The story of gold so far in 2024 has been one of impressive and steady growth. January 1stGold was trading at $2,063.73 per ounce. On August 28, the price jumped to $2,502.53. That’s a staggering increase of $438.80 per ounce, or about 21.26% in just under eight months.
To put things in perspective, if you had invested $10,000 in gold at the beginning of the year, your investment would be worth about $12,126 today, a profit of over $2,000 in less than a year. This remarkable growth outpaces many other investment options and has solidified Gold’s Status as a Top Performing Asset in 2024.
It should be noted, however, that gold has recently has surpassed its previous recordsreaching a high of $2,525 per ounce on August 20. While the current price of $2,502.53 represents a slight decline from that peak, it nonetheless reflects an extraordinary performance since the beginning of the year. This slight pullback from the all-time high is not uncommon in financial markets and is likely a healthy consolidation after a strong rally.
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Will the price of gold continue to rise?
Despite the impressive gains gold has already made, many analysts believe the precious metal’s upward trajectory may not have reached its peak yet. Various factors suggest the possibility of continued price appreciation in the short and long term.
One of the key factors driving this is the changing dynamics of global demand. In addition to sustained demand from traditional investors, there is an increased appetite for gold in the coalescing economies. This expanding consumer base could put sustained upward pressure on gold prices.
THE gold mining industry The country also faces significant supply-side challenges. New gold discoveries have become increasingly rare, and existing deposits are often in remote areas. The process of extracting gold is also becoming more complex and costly as readily accessible reserves are depleted. These supply constraints, juxtaposed with growing demand, create an environment conducive to rising prices.
Another factor to consider is The changing role of gold. As technology advances, gold’s unique properties have become essential for new applications in areas such as electronics, healthcare and renewable energy. Expanding industrial uses for gold could contribute to increased demand, which could support higher prices over time.
Central banks around the world also continue strengthen their gold reservesa strategy often seen as a hedge against economic uncertainties and currency fluctuations. This constant demand from major financial institutions is another pillar of support for gold prices.
Given these factors, some experts are predicting ambitious price targets for gold. While forecasts should always be viewed with caution, many analysts believe that gold could break new highs in the coming months, with some even suggesting that it could approach or exceed $3,000 per ounce before the end of the year.
The essentials
Gold has performed very well this year, up more than 21% since the start of the year. This rally underscores gold’s enduring appeal as a safe haven asset and potential source of significant returns. And while it’s impossible to predict with any precision what will happen in the coming months, there are signs that the gold price rally could continue for some time.
So while there is no guarantee that gold will be profitable, investors who want to take advantage of the potential for quick returns from investing in gold may want to consider buying it now. Waiting could mean paying more for an ounce of the precious metal and earning less profit in return.
