Price of gold for 1g: 72.0819 € (0%)    Price of silver for 1g: 0.8645 € (0%)   Price update for 5:00

Conflicts and Monetary Easing Will Push The Price of Gold Higher in 2024

The sale of gold in the third quarter of 2023 remained at a high level, primarily supported by intense demand from central banks, as well as above-average sales of gold bars and coins. According to a report released by the World Gold Council, during this year (until the end of October), central banks purchased a record 800 tons of gold reserves, which is 14% more than the previous year.

Above-average demand for investment gold

Investments in gold coins and bars, with 296 tons of purchased gold, surpassed the five-year quarterly average of 267 tons. However, compared to the same period last year, there was a 14% decrease attributed to the decline in demand in established European markets such as Germany and Austria. Meanwhile, there was a strong increase in demand for physical products in the Middle East, China, and Turkey, while globally, there was a decrease in demand for gold-based financial derivatives (ETFs) recording a sixth consecutive quarter of negative trends.

During the third quarter of 2023, according to the LBMA PM fixing, the average price of gold was $1,928.50 per ounce. This marks a 12% increase on an annual basis, significantly influenced by the conflict in Israel and Gaza, alongside ongoing military events in Ukraine and global economic instability.

Gold price expected to rise

Gold prices are expected to increase in 2024, as revealed by an analysis of 30 analysts reported by Reuters. According to their projections, the average price during the following year will reach $1,986.5 per ounce, representing a 3% increase compared to the average price from the third quarter of 2023.

„Gold prices will rise in 2024 from this year’s average on bets that global central banks would start monetary policy easing and after the Middle East conflict provided a boost to gold’s safe-haven rally above $2,000. Gold , used to preserve wealth in times of economic and political uncertainty, rose over 7% in October as the Israel-Hamas war boosted safe-haven bets. The metal rose above the key psychological $2,000 level for the first time since May“, writes Reuters.

Analysts also predict a rise in silver prices to an average of $24.85 per ounce in 2024. DuringOctober, silver followed the increase in gold prices, albeit with a slightly smaller monthly increase of 3%.

(Sources: World Gold Council, Reuters)

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