- 03
- Dec.
- 2023
The price of gold has reached multiple peaks in the final week of November 2023.
Gold held steady with its weekly gains, closing the week at $2,053.30 per ounce on December 1, 2023, not far from its all-time high of $2,075.47 in August 2020. As a reminder, one ounce is equivalent to 31.10 grams.
Gold prices rose amid increasing concerns about a global economic slowdown, geopolitical tensions in Asia and the Middle East, the recent decline in US inflation and lower US bond yields. These factors, along with the US dollar, typically function as competing safe-haven assets to the precious metal.
2024-2028
2024 is shaping up to be a tumultuous year that could have a significant impact on the price of gold, driven by geopolitical tensions in Europe and the Middle East, coupled with high-stakes US presidential elections.
In this context, the price of gold may surpass $2,100 in 2024, with the possibility of reaching $2,200 if a favorable combination of factors supporting demand for precious metals comes into play. More optimistic forecasts suggest that the price of gold could reach $3,000 per ounce in the next five years.
But for this increase to occur, it would be essential to factor in the growing industrial demand, which will remain a significant determinant in shaping the course of the precious metal's price.
The Global Central Banks
In 2023, central banks have repositioned gold as a geopolitical asset. Their demand for the yellow metal is at its highest since 1967, especially in emerging countries like Turkey, Egypt and Qatar. For these central banks, acquiring gold is a strategic move to minimize the impact of decisions beyond their control.
A Slow Appreciation
Gold functions as a wealth reserve and is a solid investment for those seeking to capitalize on price appreciation and diversify their portfolio. At this stage, it is all about maintaining a balanced portfolio.
However, it is essential to acknowledge that gold experiences gradual appreciation over the long term. In the past three years, its price has risen by over 30%, and over a span of 15 years, it has appreciated by approximately 130%. If the precious metal maintains this growth rate, gold should be worth over $4,500 by 2040.
Ups and Downs
As with any commodity in global markets, gold prices will keep on fluctuating based on the factors of supply and demand. Nevertheless, the precious metal maintains an overall upward trend, with occasional dips or sales that provide opportunities for purchasing and yielding significant price gains.
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