What is the forecast for Gold Prices in 2024? Inflation has been high for quite some time. While the US Federal Reserve has been actively trying to tame it, many consumers still feel the burn — struggling with higher prices, higher interest rates, and more.
This has led to increased interest in gold investments, as many consider it a smart hedge against inflation and a good way to safeguard wealth in troubling economic times.
Depending on where the price of gold goes — both now and in the future. Are you thinking of investing in gold? Then it helps to know what some experts expect for gold prices moving forward.
Gold trends in 2024 are expected to be influenced by the following factors:
- A peak in interest rates at levels not restrictive for gold investors
- Slower economic growth and its expected impact on reining in lofty equity valuations
- Negative sentiment and an under-allocation supporting higher institutional involvement
- Lower inflation impacting gold’s allure among retail investors
- Developed market central banks nearing the end of their tightening cycles
- Market consensus pointing to a mild contraction in the US in late 2023 and slow growth in developed markets
Gold prices are significantly higher than they were just a few years ago, rising from about $1,200 per ounce in October 2018 to the $1,874 per ounce they are today.
Gold prices could surge to $4,000 per ounce in 2024 as interest rate hikes and recession fears keep markets volatile.
Gold Supply
| Component | Q3’22 | Q4’22 | Q1’23 | Q2’23 | Q3’23 | y/y change |
|---|---|---|---|---|---|---|
| Mine production | 949.1 | 946.7 | 860.2 | 912.7 | 971.1 | 2.0% |
| Net producer hedging | -26.8 | -13.6 | 37.1 | -19.5 | 7.2 | – |
| Recycled gold | 268.3 | 290.7 | 312.0 | 322.9 | 288.8 | 8.0% |
| Total Supply | 1190.6 | 1223.8 | 1209.3 | 1216.1 | 1267.1 | 6.0% |
Gold Demand
| Component | Q3’22 | Q4’22 | Q1’23 | Q2’23 | Q3’23 | y/y change |
|---|---|---|---|---|---|---|
| Jewellery Fabrication | 582.6 | 601.9 | 512.4 | 492.8 | 578.2 | -1% |
| Jewellery Consumption | 525.7 | 628.5 | 474.8 | 475.8 | 516.2 | -2% |
| Jewellery Inventory | 56.9 | -26.7 | 37.6 | 17.0 | 62.1 | 9% |
| Technology | 77.3 | 72.1 | 70.1 | 70.4 | 75.3 | -3% |
| Electronics | 63.5 | 57.9 | 56.1 | 56.4 | 61.1 | -4% |
| Other Industrial | 11.3 | 11.7 | 11.6 | 11.6 | 11.8 | 4% |
| Dentistry | 2.5 | 2.4 | 2.4 | 2.4 | 2.3 | -6% |
| Investment | 100.5 | 247.4 | 274.3 | 255.7 | 156.9 | 56% |
| Total Bar & Coin Demand | 344.2 | 336.6 | 303.0 | 276.8 | 296.2 | -14% |
| Physical Bar Demand | 225.1 | 222.2 | 183.3 | 163.8 | 205.9 | -9% |
| Official Coin | 86.2 | 85.5 | 94.9 | 87.2 | 54.9 | -36% |
| Medals/Imitation Coin | 33.0 | 28.9 | 24.7 | 25.8 | 35.4 | 7% |
| ETFs & Similar Products | -243.7 | -89.2 | -28.6 | -21.1 | -139.3 | – |
| Central Banks & Other Inst | 458.8 | 382.1 | 287.7 | 174.8 | 337.1 | -27% |
| Gold Demand | 1,219.2 | 1,303.5 | 1,144.5 | 993.7 | 1,147.5 | -6% |
| OTC and Other | -28.6 | -79.7 | 64.7 | 222.4 | 119.6 | – |
| Total Demand | 1,190.6 | 1,223.8 | 1,209.3 | 1,216.1 | 1,267.1 | 6% |
| LBMA Gold Price, US$/oz | 1,728.9 | 1,725.9 | 1,889.9 | 1,975.9 | 1,928.5 | 12% |
Source: Metals Focus, Refinitiv GFMS, ICE Benchmark Administration, World Gold Council
Whether it’s a good time to buy gold depends on your personal situation and goals, but generally speaking, pros say yes.
“Now is an opportune time to invest in gold because the precious metal has historically risen in value over time and is viewed as a safe-haven asset that protects wealth amid geopolitical instability,” Alex Ebkarian, Chief Operating Officer of Allegiance Gold, says. “It also helps investors weather inflation and high-interest rates.”