GoldPrice.org said that the price of an ounce of gold has increased by 45.93% over the past year, with an increase of 6.58% over the past 30 days. As of October 3, the world gold price was $2,642.45 and experts believe that the price of gold will increase to a record $3,000 before the end of 2024.
"In March 2024, gold was $2,070, and despite the declines over the past six months, it has continued to rise. When gold was $2,600 an ounce, I thought it would be $2,800 by the end of the year. But now? We could see gold at $3,000 an ounce in 30 days," USA Pawn expert Nick Fulton told Newsweek.
The spike in gold prices could be due to a number of factors; including the new interest rate cut by the US Federal Reserve (Fed); new appeal to investors; and the war in the Middle East, as gold is considered a safe investment, especially in times of geopolitical conflict.
Michael Martin, Vice President of Market Strategy at TradingBlock, said it is not surprising that gold prices have surged during times of great geopolitical uncertainty.
Matthew Jones, a precious metals analyst at Solomon Global, predicts that gold prices could reach $3,000 if Israel retaliates against Iran.
Tehran launched about 180 missiles at Israel on October 1 in response to Israel’s killing of Hamas and Hezbollah leaders. “Gold will reach and surpass $3,000 as soon as Israel launches missiles,” he said.
In addition to the ongoing war in the Middle East, world gold prices are rising as new investors and central banks in Asia increase their gold purchases.
“We are seeing a lot of first-time gold buyers. With gold up 25% in the last six months, gold is attracting new investors,” Fulton said, noting that central banks in China and India are increasing their purchases.
The People's Bank of China (PBOC) has been buying gold for 18 consecutive months and its gold reserves increased to $182.98 billion at the end of August, up from $176.64 billion at the end of July, Reuters reported.
Luciano Duque, chief investment officer at C3 Bullion, said the trend of central banks buying gold will not stop anytime soon and will drag other investors along.
Meanwhile, some investors have avoided selling gold. "This further limits supply and puts additional upward pressure on prices," said Mr. Jones.
Regarding the outlook for gold for the remainder of 2024, Mr. Duque commented: "We believe that in the short to medium term, there is no possibility of gold prices falling after reaching the $3,000 mark. We think that gold prices below $2,000 may be something that we will probably never see again in our lifetime."
“The issues in the Middle East will continue to drive gold prices, as any disruption to oil production and transportation will send inflation back into the stratosphere and gold performs best during periods of high inflation,” Jones noted.
