Gold Will Be at Its Peak in 2024

Introduction

Gold continues to maintain its position as a reliable asset amid geopolitical tensions and financial market uncertainties. Analysts predict that next year, gold prices could reach a historical high of $2,100 per troy ounce. This forecast is based on several factors, including the Federal Reserve's potential rate cuts, geopolitical risks, and internal economic dynamics.

Current Situation

Currently, gold price is at $1,980 per troy ounce, remaining relatively resilient this year. In May of this year, prices surged to $2,055 per ounce, approaching its all-time high. The ongoing military conflict between Israel and Hamas solidifies gold’s position as a safe haven asset, and with the Fed likely to cut rates next year, additional price increases are anticipated.

Market Analysis and Forecasts

John Ing, President and CEO of Maison Placements Canada, has expressed his expectations regarding gold prices. He forecasts a rally to $2,200 per ounce, citing factors such as inflation, de-dollarization, geopolitical risks, and the rise of populism. Ing believes that these factors create a favorable environment for gold, considering it as a "safe haven."

Global Economic Threats

Ing's also identified one of the key factors behind global economic threats: growing debt problems in the U.S. He emphasized that since 2008, the supply of Treasuries has increased fivefold to over $25 trillion. This dynamic could pose long-term challenges to the global economy and contribute to strengthening gold’s position as a stable asset.

Gold Coin Sales

Against the background of challenging global conditions, the total number of ounces of American Eagle gold bullion coins in 2023 exceeds 2022 sales. As of October 31 this year, 1,017,000 ounces of gold Eagles have been sold, surpassing the 980,000 ounces sold for the entire 2022.

Conclusion

In 2024, gold could reach its peak value, hitting $2,100 per ounce. Economic factors such as potential interest rate cuts, global risks, and rising debt underscore gold's role as a reliable asset in investment portfolios. Meanwhile, gold coin sales maintain stability, indicating a consistent demand for physical gold in investment portfolios.