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Gold has long been a trusted asset for investors seeking stability in times of uncertainty. Known for its ability to protect wealth during market turmoil, gold also functions as a reliable asset. protect against inflation. Its reputation as a store of value has also made it an integral part of many investment portfolios, offering protection against volatility this can affect stocks, bonds and other asset classes.
The appeal of gold, however, has gone beyond its traditional role. Over the past year, the precious metal surprising but impressive bull the race was an extra draw. The perfect storm of economic factors has led to a significant rise in prices of the precious metal in 2024, which has attracted not only seasoned investors but also new entrants to the market. THE constant increase in value also highlighted gold as one of the best performing assets, prompting many investors to re-evaluate its potential for both wealth preservation and growth.
But how many the price of gold has increased since the start of this year – and how much more could it grow in the months to come? Let’s take a closer look at the gold price increase in 2024 and what could happen next for this precious metal.
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How much has the price of gold increased so far this year?
This year has been remarkable for gold, as it has seen consistent and significant price increases. On January 1st, the price of gold was $2,063.73 per ounce. Fast forward to today, and gold is trading at $2,743.31 per ounce (as of October 23, 2024). This represents a substantial increase of $679.58 per ounce, translating to a growth rate of approximately 323% in just over 10 months.
This rise is even more impressive when you consider gold’s previous record highs. In August, the price reached $2,525 per ouncean important milestone at the time. However, gold continued to climb beyond this point, eventually surpassing this figure by more than $200 per ounce. These gains highlight gold’s extraordinary performance in 2024, as it has consistently exceeded expectations and set new benchmarks.
What makes this year’s performance particularly striking is that gold is traditionally considered a stable, long-term asset rather than one known for quick short-term gains. Historically, investors have turned to gold for its ability to preserve its value over time, particularly during times of economic uncertainty or inflation.
Although steady growth is expected, the sharp rise of nearly 33% in just 10 months is unusual for an asset class that typically moves more slowly. But this year’s price surge is unique, as it reflects not only increased demand for gold, but also unique market conditions – such as geopolitical tensions, inflationary pressures and changes in central bank policies – who have amplified the short-term value of gold in a way rarely seen.
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Will the price of gold continue to rise?
Despite gold’s impressive performance so far, many analysts believe the precious metal has not yet reached its ceiling. Various factors could contribute to further price increases in the coming months.
The first is that global demand for gold remains robust, with emerging economies increasingly contributing to this demand. This increased interest could push prices higher, as more investors around the world turn to gold as financial collateral. Supply constraints also influence gold prices. The discovery of new gold deposits has slowed and most remaining reserves are in hard-to-reach locations, making extraction both expensive and complex. With growing demand and limited supply, this dynamic could create an environment for further price growth.
Moreover, the evolutionary role of gold in various industries adds another layer of demand. As technology advances, the use of gold in electronics, healthcare and renewable energy applications is increasing. These industrial uses are expected to continue to expand, which could further drive demand. So do central banks around the world continue to increase their gold reserves. This strategy, which generally aims to mitigate currency fluctuations and economic uncertainties, provides another solid basis for future price increases.
Given these factors, some experts predict that gold could reach new milestones by the end of the year, with some forecasts even suggesting that it could even reach new highs. approach or exceed the $3,000 per ounce mark.
The essentials
Gold’s extraordinary rise in 2024, up nearly 33% year-to-date, highlights its strength as a safe-haven asset and as a surprisingly short-term performing asset. Although gold is generally considered a long-term investment, the rapid price surge we have seen this year highlights the unique market conditions that have fueled its growth.
Looking ahead, the combination of robust demand, supply challenges and evolving industrial applications suggests that gold’s upward trajectory may continue. So, for investors considering gold, this could be an opportune time to enter the market. With prices already high, waiting could soon mean paying even more per ounce.
