Gold finished 2023 on a high note, reaching the all-time-high price of $2,135 per ounce. But will 2024 be another record-breaking year for gold prices?
Join us as we analyze the market, trends, and key factors to provide you with the most accurate gold price forecast for 2024 possible.
Key Highlights:
- Gold price reached an all-time high in 2023, peaking at $2,135 per ounce in December.
- On March 6th, the gold price broke the 2023 record, reaching $2,142/oz.
- Many experts expect the price of gold to rise further in 2024, with some setting price targets at $2,175/oz and others going as far as $2,400/oz.
- The key factors shaping gold prices in 2024 will be Fed rate cuts, geopolitical uncertainties, and central bank purchases.
- Many experts claim that gold prices will continue to grow steadily beyond 2024, with optimistic scenarios suggesting the price of gold per ounce will go above $3,000 by 2030.
What Will Gold be Worth in 2024?
Gold entered 2024 at a price of $2,062 per ounce. It then settled, fluctuating between $2,080 and $2,020, falling below $2,000 per ounce in mid-February. Since February 14th, gold prices have been rising, breaking the previous year’s record on March 6th and hitting an all-time high gold price of $2,142 per ounce.
This means that from March to February, the price of gold surged by roughly 5.6%. Year-to-year (March 2023 to 2024), the price of gold per ounce has grown by 16%.
What about the remainder of 2024? Various sources have different estimations.
J.P. Morgan, for example, expects gold to reach an average price of $2,175/oz in the final quarter of the year. A similar prediction was made by Goldman Sachs. ING claims the gold will average at $2,080 in 2024, while according to UBS’s gold prediction, it might even reach and go above $2,200 per ounce.
Long story short, most gold predictions we analyzed expect the gold to maintain its momentum of steady growth throughout the remainder of 2024 – both J.P. Morgan and Goldman Sachs made the same prediction of a 6% rise.
Key Gold Price Driving Factors in 2024
Multiple factors can affect the price of gold. Higher inflation, for example, has been associated with a surge in gold prices (although that’s not always the case). There’s also the case of the demand for gold consumer goods (e.g., jewelry) that can also affect the overall price of gold.
However, when discussing gold’s recent surge and its 2024 price, the key price-driving factors identified by economists are the Fed interest rate cuts, geopolitical tensions, and central bank purchases.
US Interest Rate Cut
The Federal Funds Rate has remained at the level of 5.50% since July 2023. However, with this year’s January US inflation rate being higher than anticipated, there’s a general concern that the Fed might decide to cut the current rate.
When might this happen? Some experts, including ING analysts, claim that the Fed might start cutting interest rates as early as April or May 2024, with the Federal Funds Rate being expected to be cut to 4% by the end of the year.
How does this affect gold prices? Historically, gold has shown a strong correlation with interest rates. Usually, higher interest rates relate to lower gold prices and vice versa. That said, if the Fed does cut interest rates in the upcoming months, this might be followed by a further increase in the price of gold.
Geopolitical Tensions
Gold has always been a safe haven for investors in times of uncertainty. Geopolitical tensions tend to drive the demand for gold, increasing its price.
In 2024, we face several geopolitical turmoils expected to affect the price of gold. There’s the war between Israel and Hamas and Russia’s war in Ukraine. The tensions between the United States and China are also expected to persist well into 2024. There’s also the case of the US presidential elections on November 5th, which might have a major impact on any gold prediction.
Central Bank Purchases
As estimated by J.P. Morgan analysts, central banks purchased roughly 950 tonnes of gold in 2023, exceeding the record-breaking amount purchased in the same period in 2022. This trend is expected to continue in 2024, i.a., because of the geopolitical tensions mentioned above, further driving the price of gold.
Gold Price Forecast for the Next Five Years
It’s hard to provide a detailed and accurate analysis of how the price of gold will shape in the upcoming years. That’s because drivers that affect gold prices are highly complex and volatile.
However, of the few analysts who made such predictions, most agree that gold prices are expected to grow in the next five years, ultimately reaching $3,000 in 2030. At the moment, however, it’s impossible to say whether this prediction will be correct.
Is Now the Right Time to Invest in Gold?
In 2024, gold hit an all-time high price of $2,142/oz. However, according to multiple experts, this record will likely be beaten even this year as gold prices are expected to grow further and continue to do so beyond 2024. That does raise the question – is now the right time to invest in gold?
Well, according to all the predictions, the answer is yes, but the answer is never that simple when any investment form is considered, and that includes gold. Gold can be a good option for those seeking a more stable and long-term investment. On the other hand, it might not provide instant and significant returns in shorter periods while also requiring additional investment into storage and shipping.
There’s also the question of how to invest in gold. When it comes to that, you have several options, ranging from purchasing physical gold to investing in gold ETFs. There’s also the growing interest in gold IRAs, which allow individuals to purchase gold and precious metals through investment retirement accounts.
Our advice here is to consider your options and learn as much about them as possible. This is where our Free IRA Guide should come in handy. As for gold forecasts, keep in mind that they are mere predictions. While they look promising for gold investors now, they can drastically change in the upcoming months, depending on complex and volatile gold price drivers.
Article Sources
At Gold IRA Blueprint, we dive deep into the world of gold IRAs, using trusted sources to back up our insights. Our sources range from official documents to expert interviews, ensuring our content is both accurate and reliable. We also draw on research from reputable publishers to give you the most comprehensive understanding possible. Check out our editorial policy to see how we maintain our high standards for accuracy and fairness. Also make sure to check out our Financial Review Process to have a better understanding of our process.
- https://tradingeconomics.com/commodity/gold
- https://www.ft.com/content/72ae7a4a-83fe-4e55-8265-4278204c1d5d
- https://www.jpmorgan.com/insights/global-research/commodities/gold-prices
- https://www.bls.gov/cpi/
- https://www.goldmansachs.com/intelligence/pages/gold-prices-are-forecast-to-rise-six-percent.html
- https://think.ing.com/articles/fed-to-downplay-chances-of-imminent-action-while-holding-rates-steady/
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