Gold Price Trend and News for 2024: What to Expect in the Coming Year
The gold market is influenced by several key factors that impact supply and demand. Innovations in mining technology and exploration techniques can impact the supply side of the gold market. Discoveries or improvements in extraction efficiency can influence future supply levels. Population growth and wealth accumulation in emerging markets are driving the long-term demand for gold, particularly for jewelry and investment purposes. Besides this, the popularity of gold exchange-traded funds (ETFs) and other investment vehicles that track gold prices can influence market liquidity and investor participation. The increasing awareness about sustainability and responsible sourcing practices in mining that can affect people’s and investors’ perceptions of gold, influencing demand and pricing.
Additionally, gold is primarily utilized in jewelry for its attractiveness and ability to resist tarnishing. Moreover, it is crucial in aerospace for its infrared radiation reflection properties, which shield spacecraft and astronauts from solar radiation. It is also employed in medical therapies, such as injections, for managing rheumatoid arthritis, which is strengthening the growth of the market.
In line with this, gold finds applications in dental fillings and implants in dentistry and medicine because of its biocompatibility.
The price of the gold in USA reached 1895.25 USD/Troy Ounce (H2 2023 Avg Price).
The second half of 2023 marked a significant period of growth for gold prices globally, influenced by various factors impacting major markets worldwide. In India, which was one of the largest consumers of gold primarily for cultural and ceremonial purposes, such as ornaments, positively impacted the market. Moreover, the festival of Diwali and the extended wedding season in the fourth quarter stimulated robust demand. This cultural significance, coupled with festive spending traditions, contributed to an uptick in gold prices as demand surged during this period.
Simultaneously, in the European gold market, prices also demonstrated a pronounced upward trajectory during the second quarter of 2023. Here, fluctuations in stock markets and currency values, particularly the US dollar, exerted a notable influence on gold prices. The dollar’s fluctuations are crucial as they affect the attractiveness of gold as an alternative investment. Furthermore, heightened international demand during this period further bolstered the upward movement of gold prices in European markets. This represents a substantial half-yearly increase of around 4%, reflecting sustained investor confidence and increased allocations towards gold amidst economic uncertainties and global market volatilities.
Overall, the convergence of cultural festivities in India and broader economic factors in international markets contributed synergistically to the strengthening of gold prices across major regions during the second half of 2023. This period underscored gold’s enduring appeal as a safe-haven asset and strategic investment choice in times of economic fluctuation and market instability.
Source: IMARC Group
