Eric Sepanek
SBC Founder
Eric Sepanek is the founder of Scottsdale Bullion & Coin, established in 2011. With extensive experience in the precious metals industry, he is dedicated to educating Americans on the wealth preservation power of gold and silver.
Gold kicked off 2024 with impressive gains, causing experts to revise their predictions a few months ago. However, the yellow metal didn’t just hit those expectations – it blew past them. Thus far in 2024, gold has climbed nearly 33%. Instead of calling for a pullback or pause, experts are, once again, raising the bar for where prices could stretch this year and beyond. Understanding these renewed forecasts can give investors valuable insights into what may lie ahead as gold ventures into uncharted territory.
Gold’s Chart-Topping 2024 Performance
Gold prices have been on a tear throughout 2024. A quick look at the chart shows a confident and unwavering upward trend.
The yellow metal launched into the new year at $2,063.73 an ounce (oz) after a respectable 15% gain in 2023. For much of the middle of the year, prices hovered between $2,300/oz and $2,400/oz. The Federal Reserve’s aggressive rate cut forced the metal out of this holding pattern, sending it far past the $2,600/oz barrier. The most recent high of $2,748.91/oz puts gold’s rise at roughly 32.6% so far. Despite this stellar rally, experts are telling investors to prepare for further growth ahead.
Revised Gold Price Predictions for 2024-2025
| Financial Institution/Analyst | Prior 2024 Price Prediction (per. oz) | Revised Price Prediction (per. oz) | Time Frame |
|---|---|---|---|
| Citibank | $2,100 | $3,000 | 2025 |
| Bank of America | $2,400 | $3,000 | By 2025 |
| Commonwealth Bank | $2,800 | $3,000 | Q4 2025 |
| Goldman Sachs | $2,700 | $3,000 | Early 2025 |
| World Gold Council | – | $3,000 | 2025 |
| ANZ | $2,394 | $2,900 | End of 2025 |
| ING | $2,150 | $2,700 | 2025 (avg.) |
| Société Générale (SocGen) | $2,460 | $2,800 | 2025 (avg.) |
| TD Securities | $2,350 | $2,700 | 2024 |
| UBS | $2,500 | $2,700 | Mid-2025 |
| BMI | $2,700 | 2024 | |
| J.P. Morgan | $2,500 | $2,600 | 2024 |
| Commerzbank | $2,200 | $2,600 | Mid-2025 |
What the Experts Expect From Gold
Citibank
Bank of America
Commonwealth Bank
Goldman Sachs
World Gold Council
ANZ
ING
TD Securities
Société Générale (SocGen)
UBS
BMI
JP Morgan
Commerzbank
What’s Fueling the Gold Rally?
The economic, geopolitical, and political forces driving gold prices remain in play, but their impact has intensified significantly throughout the year. This growing severity and the absence of clear solutions have fueled gold’s upward trajectory. As the following pressures mount, gold’s momentum has accelerated, leading to substantial price gains:
1. Interest Rate Cuts
The anticipation of rate cuts bolstered gold’s rally throughout Q1, Q2, and Q3 in 2024. Now that the Fed has dropped the 50-basis-point hammer, the economic impact of this rate cut and further cuts could drive gold prices higher in Q4 and into 2025. The economy is entering a period of quantitative easing where the government increases the money supply and lowers borrowing rates to promote growth. These actions often lead to a weaker dollar, providing a tailwind for gold as investors seek safe-haven assets.
2. Sustained Central Bank Demand
The steady drumbeat of central bank demand has been one of the principal pillars of gold’s sustained rally. National-level investors scooped up record amounts of gold bullion bars in 2022, 2023, and the first half of 2024. According to World Gold Council surveys, central banks across the globe have no intention of slowing down their binge. Just the opposite, in fact. Several countries have made concrete steps toward further elevating their purchases. For example, China recently instituted gold buying quotas, and Russia upped its daily purchases by 700%.
3. Growing Geopolitical Threats
On the first anniversary of the war in the Middle East, Israel launched a fresh offensive against the Hezbollah terrorist group. On the eastern edge of Europe, the stalemated Russian-Ukraine War is nearing its third year. With each passing day, both conflicts have the potential to explode into regional wars. This deeply entrenched geopolitical uncertainty pushes investors and governments to more secure assets with relative stability such as physical gold.
4. US & Global Debt Levels
The world economy is sitting on top of a rising mountain of debt which could crumble the massive fiat-currency experiment. The $35 trillion national debt makes up a significant portion of the globe’s $312 trillion tab. Instead of waiting around for local currencies to be negatively impacted, governments are diversifying their holdings by shifting to physical gold. The behind-the-scenes impact of Modern Monetary Theory (MMT) makes it unlikely this spending-printing cycle will cease no matter who is elected.
5. De-Dollarization
For over a decade, many countries have sought to shrug off the dollar’s economic burden. However, this trend has gained tremendous momentum recently with the combination of a debt-laden dollar and the rise of the BRICS block. This rapidly expanding group of emerging economies is spearheading the de-dollarization push for a USD-free economic order. The BRICS nations are ramping up international trade in local currencies, stockpiling gold at record rates, and demonstrating to like-minded countries that the shift is possible.
Should You Buy Gold Now?
All economic, geopolitical, and political signs point to further gains in gold. Experts from various financial disciplines are converging on the rapidly growing consensus that gold’s rally is far from over. With more fuel in the tank, many investors are wondering if it’s time to join the ride. In reality, not every gold asset is created equal.
Buying the right asset depends on your financial goals. Speaking with a precious metals advisor can help you determine if gold or silver is right for your portfolio based on how it promotes your investment objectives. The advisors at Scottsdale Bullion & Coin would be happy to answer all your questions. Contact us today by calling toll-free at 1-888-812-9892 or using our live chat function.