Expect Gold to Move Higher 

Gold has increased by over 12% since the beginning of 2024. Let’s review why the yellow metal is increasing in value and what valid sources are predicting for gold moving forward. 

What’s Fueling the Gold Markets in 2024 

There are several factors causing gold to currently move higher in value. Let’s review the main reasons why gold is expected to continue to rise. 

1) The United States government continues to spend borrowed money and this is why the annual interest cost on the U.S. deficit has now reached one trillion dollars. Cumulative inflation is up 18% from 2021. 

2) Ballooning U.S. deficits are causing other countries to move away from the toxic debt of the U.S. dollar. 

3) Although central banks had been sellers of precious metals for decades; they are now buying heavily into the physical gold market. 

4) Tensions in the Middle East and the Russian-Ukraine war. Also, it’s important to point to the current administration and the strategic military positions that have been lost due to what appears to be incompetence and a deficit in U.S. leadership. Which will most likely promote further global unrest and instability moving forward. 

Forecasts for Gold Moving Forward 

1) Market guru Edward Yardeni, predicts gold could surge to $3,500 by next year, hinting at a potential 50% upside. He draws parallels to the 1970s Great Inflation era, suggesting current inflation trends could propel gold to new heights. 

2) Goldman Sachs referred to the gold market as an “unshakeable bull market” and revised upward its price target for the yellow metal from $2,300 per ounce to $2,700 by the end of the year. 

3) David Rosenberg, founder of Rosenberg Research, said that his baseline scenario is for gold to hit $2,500 an ounce. He added that any number of catalysts could even push prices to $3,000 an ounce. 

4) FXEMPIRE said, Gold is in the beginning stages of a new bull market that should last into the 2030s. By 2030, we see gold hitting our longer-term price target between $8000 to $10,000. 

Why Investors Own Physical Gold 

1) Gold plays a multifaceted role in the global economy. It serves as a store of value, a hedge against inflation, and a safe haven asset during times of economic uncertainty. 

2) Inflation typically boosts the value of gold as it erodes the purchasing power of fiat currencies. Investors turn to gold as a hedge against inflation, seeking to preserve the real value of their wealth. Consequently, during periods of inflation, the demand for gold often increases, driving its price higher. 

3) Precious metals have a comparatively low or negative correlation when compared to stocks and paper assets. When the values of other assets decrease, precious metals will likely rise in value and promote portfolio balance and stability.  

4) Precious metals are not prone to mismanagement or mishandling by corporations or government entities. Precious metals are not subject to government policy changes. For example, when you own a gold Eagle coin, no one can borrow or loan against your gold coin. Physical precious metals are free from the risk associated with debt. 

5) Gold is recognized by central banks and governments alike as a store of value. Many sovereign mint coins, like the American gold Eagle coin, are legal tender designated. Individuals can exchange sovereign mint produced precious metal coins for goods, services, and fiat currencies anywhere in the world. Gold is the ultimate global currency.  

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