Anadolu Agency :
Gold soared to all-time highs in 2024, hitting a record $2,790 per ounce in October, which is likely to continue next year, the experts said.
The strong demand for the precious metal, one of the main safe-haven assets, is expected to continue next year, led by geopolitical risks, central bank purchases and the U.S. Federal Reserve’s rate cut cycle.
Gold ended last year around $2,062 and was trading at $2,620 as of Wednesday, an increase of 27%, while the performance of these prices marked the best return on gold since 2010.
Gold broke records 40 times annually as total gold demand exceeded $100 billion for the first time in the third quarter of 2024.
Having risen to an all-time high in October, the ounce price ended the month at $2,743, up 4.15%.
The ongoing wars in Ukraine and Palestine, as well as Israeli-Iranian tensions, caused an upward trend in gold demand. Political uncertainties before and after the U.S. presidential election in November also pushed gold prices upwards, while strong demand in Asia contributed to the price hikes.
Geopolitical and political uncertainties and turmoil give rise to gold prices, experts say.
A recent report by the World Gold Council said that demand for gold rose on risks and volatility.
Ewa Manthey, commodities strategist at ING, told Anadolu Agency (AA) that the general bull market outlook and safe-haven feature of gold and central bank purchases will carry gold to even higher records in 2025.
“The inflationary impact of (U.S. President-elect Donald) Trump’s policies could lead to fewer (interest) rate cuts than previously expected,” she noted.
Manthey said that central banks continued to increase their gold reserves despite a slowdown in the third quarter.
“It is now looking likely that the full-year total will fall short of that seen over the previous two years.
