Gold surges 27% in 2024, hitting $2,790 as safe-haven demand and central bank buying soar
Gold prices have surged throughout 2024 reaching a peak record of $2,790 per ounce in October, as was driven by rising geopolitical tensions, central bank purchases, and the US Federal Reserve’s rate cut cycle.
As the year closes, the precious metal’s robust performance continues, with prices up 27% from the previous year and an impressive rise from $2,062 at the start of 2024 to $2,630 as of Wednesday. This marks the highest annual return for gold since 2010, and analysts expect the momentum to carry into 2025.
Gold price dynamics (November-December 2024). Source: TradingView
Throughout the year, gold hit new records breaking barriers 40 times, as total demand exceeded $100 billion in Q3 2024. The ongoing conflicts in Ukraine and Palestine, as well as tensions surrounding Iran, heightened the demand for gold, solidifying its status as a primary safe-haven asset. The US presidential election also played a pivotal role, with political uncertainty pushing investors toward gold and strong demand in Asia further fueled the rally
Gold price outlook for 2025 strong as central banks ramp up reserve
With central banks continuing to increase their gold reserves despite a slight slowdown in Q3, Gold’s outlook for 2025 appears promising. Ewa Manthey, commodities strategist at ING, points out that central bank purchases, coupled with the ongoing safe-haven appeal of gold, will likely propel prices to even greater heights next year.
Short-term price action also shows bullish potential. Gold’s recent recovery from a four-week low at $2,580 has been gradually building within a bullish channel. The price rose by 0.5% during today’s Asian session, currently approaching resistance at the 100-day EMA near the 0.786% Fibonacci level at $2,640. Meanwhile, the $2,600 psychological level continues to hold as support, reinforcing gold’s price floor in the short term. With its safe-haven status strengthened by geopolitical uncertainty and macroeconomic factors, gold remains a highly attractive asset, with the potential for further gains in 2025.
The Federal Reserve’s indication of a slower pace of interest rate cuts keeps gold’s upward momentum in check. Gold prices rebounded from a four-week low of $2,580 per ounce on December 19.
