The gold market in 2024 continues to witness dramatic fluctuations, with gold prices now exceeding initial predictions and reaching a record high of $2,521.50/ounce on August 29, 2024. In this context, Oriental Gold & Gemstone Trading LLC will update and adjust the analysis of the gold price situation at the end of 2024, and provide investment recommendations in accordance with the latest market developments.

Summary of gold market developments from the beginning of the year to August 29, 2024

Gold prices have undergone a meteoric rise since the beginning of 2024, surpassing many important resistance levels and continuously setting new peaks. Key factors driving the rally include:

Rising global inflation: Despite efforts by central banks to tighten monetary policy, inflation remains high, eroding the value of fiat currencies and boosting demand for gold as a hedge against inflation.

Rising geopolitical uncertainty: The protracted Russia-Ukraine conflict, escalating US-China tensions, and uncertainties in other parts of the world have created a risky investment environment, prompting investors to seek gold as a “safe haven”.

Weakening US dollar: The US dollar has experienced a sharp decline against other major currencies, increasing the appeal of gold to investors holding other currencies.

Slowing global economic growth: Concerns about a global recession have boosted demand for gold as a safe haven asset.
Increased physical gold demand: Physical gold demand, especially from major markets such as China and India, has increased sharply in recent months, contributing to higher gold prices.
Analysis of factors affecting gold prices by the end of 2024

Inflation: Although there are signs that inflation may cool in the coming months, there are still many factors that could cause inflation to continue to rise, including supply chain disruptions, rising energy prices and loose fiscal policy. If inflation continues to be a major concern, gold prices could continue to rise.
Fed monetary policy: The Fed is expected to continue raising interest rates in 2024 to curb inflation. However, if the US economy shows signs of weakness, the Fed may have to pause or even reverse its tightening policy, creating conditions for gold prices to rise.
USD: The USD could continue to weaken if the Fed slows down the pace of interest rate hikes or the US economy declines. A weak USD will support gold prices.
Geopolitical instability: The geopolitical situation in the world is still unpredictable. Any escalation of tensions could push gold prices higher.
Physical gold demand: Physical gold demand is expected to remain strong in the final months of the year, especially from Asian markets.
Gold price forecast for the end of 2024 (Updated)

Based on the latest market developments and analysis of influencing factors, Oriental Gold & Gemstone Trading LLC has adjusted its forecast for the end of 2024 gold price to $2,600 – $2,700/ounce. However, we also note that the gold market always has potential risks and can be affected by unexpected events. Therefore, investors need to be cautious and flexible in their investment strategies.

Investment Recommendations

Physical Gold: Physical gold is still a safe and effective investment channel to protect assets against market fluctuations and inflation.
Gold ETF: Gold ETF is a suitable choice for investors who want to access the gold market flexibly and conveniently.
Gold mining stocks: Gold mining stocks can bring higher profits during periods of rising gold prices, but also come with greater risks. Investors should consider carefully before investing in this field.
Conclusion

The gold market is in a period of strong growth, and the outlook for the end of 2024 is still very positive. However, investors need to be vigilant and updated with market information to make wise investment decisions. Oriental Gold & Gemstone Trading LLC is always ready to accompany customers, providing quality products and services, along with professional and reliable advice.