2024 was a big year for gold, as the yellow metal reached highs unseen before, peaking at $2,790.12 per ounce at the end of October. The past twelve months have been marked by geopolitical uncertainties, presidential elections in the United States, and central bank monetary policy moves, all of which affected the precious metal.
Major banks, including the US Federal Reserve and the European Central Bank, embarked on an interest rate-cutting journey, which largely prompted further appetite for the non-yielding asset this year. Meanwhile, as the war between Russia and Ukraine raged on, and the conflict in the Middle East spread, these events further buoyed the value of the yellow metal, which has been historically seen as a safe haven in precarious times, throughout 2024.
However, the upward trajectory was somewhat offset by US President-elect Donald Trump’s re-election and the Fed’s most recent economic projections release, which foresaw less steep policy easing than previously anticipated. This led to the strengthening of the American dollar and growing optimism about the economic outlook, which consequently took some attention away from gold.
On an annual basis, the price of gold surged around 27%, while it fell a bit over 1.3% month-on-month. According to Heraeus Precious Metals, the asset is expected to outperform itself in the upcoming year, with a possible high of $2,950 per ounce, as the trends that pushed it higher this year are likely to spill over into 2025, with Trump policies and tariffs adding a new layer of unpredictability.
