Overall, the price of gold in 2024 will rise and no significant declines are expected. However, investors should keep in mind that this growth will be slow. There's good news for long-term investors: volatility in 2024 is said to be low. The World Gold Council, the market development organization for the gold industry, recently opined that the commodity will face two key obstacles.
Gold is not only known for being an element that diversifies portfolios, but because fear of inflation increases, investors tend to resort to gold because it is considered a good protection against rising prices. I have carried out a similar technical analysis of gold prices using the Fibonacci channels on the weekly chart to make a forecast for the next three months. These geopolitical tensions also increase pressure on financial markets, but they help boost the demand and value of gold. Gold is one of the most established and mature markets that exist when it comes to investable assets.
But then, in the 19th century, most countries printed paper coins backed by their gold values. This is because current economic conditions will give us a clearer idea of where the price of gold will go. Predicting the price of gold over the next five years will be a little easier than considering a long-term forecast. B) During periods of economic and stock market growth, gold must “compete for profitability and investor attention”.
Similarly, gold and interest rates also influence the evolution of the price of gold, since lower interest rates, which usually occur during times of financial uncertainty and governments want people to spend, make saving more difficult. There is a demand for gold from people seeking to protect themselves from volatility and uncertainty. The actions of these participants can substantially change demand for gold jewelry and investment instruments. The policy of quantitative easing is in full swing in some of the largest economies in the world and this is good news for gold, since savings are not taken into account when it comes to dollars and a new means of saving, such as gold, is needed.
Since gold is also considered a very effective portfolio diversifier due to its low or negative correlation with all major asset classes, it is often acquired during times of uncertainty, and that is why one of the factors to consider is the relationship between gold and other asset classes that feel pressured or satisfied by current financial circumstances. For example, the American bank JPMorgan earned nearly a billion dollars this year trading precious metals (mainly gold).