Have gold prices peaked for 2024? Here's what experts say
Gold has achieved multiple record prices so far in 2024. In March, the spot price hit a record $2,160 per ounce price. Not long after, gold's price hit an all-time high at $2,265 per ounce to kick off April. More recently, gold peaked at $2,435 on May 20, a new milestone. Overall, gold futures are up nearly 13% so far this year.
Since late May, though, gold prices have begun to settle. In June, the spot price of gold hovered around the $2,300 mark — and as of July 2, the spot price of gold stands at $2,326.02 per ounce. So, is the $2,300 per ounce price the new floor for gold? Have we seen the last of gold's record-breaking run in 2024, or is there room for more growth? Here's what the experts say about the price of gold and whether it's a good investment right now.
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Have gold prices peaked for 2024? Here's what experts say
"It is unlikely that gold has peaked in 2024," says Anthony Rousseau, head of brokerage solutions at TradeStation Group. "We've seen a pause in net global positive liquidity since April, which is reflected in assets like gold and Bitcoin where upward movement has stalled."
Net global positive liquidity is a financial indicator showing the amount of liquid assets minus liabilities worldwide, so its halt means less funds are available for growth for assets like gold.
Still, Rousseau remains bullish on gold for the long term.
"We are in a multi-year bullish breakout for gold, and it is likely going to play out over the next few years before we reach any real overbought prices. I'm expecting gold to be higher going into Q4 due to the expected increase in central banks' positive liquidity policies taking place around the world and a likely weaker dollar due to the Federal Reserve's actions to come," Rousseau says
"Gold could potentially move higher due to world central banks buying gold at a faster pace, current geopolitical tensions having no end in sight [and] election uncertainty which is making investors nervous," Alex Ebkarian, COO and co-founder at Allegiance Gold, a precious metals dealer, notes.
Ebkarian also attributed potential gold price growth to a longer-term view of the U.S. dollar weakening over time, uncertainty about the Fed cutting interest rates this year and overall investor sentiment and nervousness.
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What to know about assessing gold prices this year
If you're researching gold and trying to get a grasp on its potential for growth, many experts, like Mark Charnet, CEO of American Prosperity Group in Sparta, New Jersey, advise taking a long-term view on growth while considering what factors could influence its price.
"The price has never peaked when purchased for the long-term. There is always growth potential left," says Charnet. "Gold prices will rise over time, and the year 2024 is too short a hold period, in my opinion."
It's wise practice to key in on what factors could affect the price of gold in both the short and long term, such as supply and demand.
"Gold is a scarce commodity and very difficult to mine and produce, which makes it valuable given there is so much demand worldwide, yet very little supply," says Ebkarian.
And, don't forget how the 2024 U.S. presidential election and other economic fundamentals could impact the price of gold.
"We think if there's a surge in market volatility, especially around the election this fall, gold could make new highs in 2024. If volatility remains low, fundamentals should drive gold higher over the next 12 months regardless of market volatility," Patrick Kennedy, founding partner at AllSource Investments, says.
Is gold a good investment right now?
Experts we spoke with generally agree that while gold prices may be volatile in the short term, it maintains its reputation as a reliable long-term investment, particularly in the current environment.
"In our view, there has been a clear regime change when looking at the macro environment. We're in an era of ballooning government debt with higher interest rates than we've experienced over the past decade, combined with heightened geopolitical tensions," Kennedy says. "Due to the economic uncertainty such an environment breeds, central banks have taken notice and are now steadily increasing allocations to gold, which should bode well for higher prices. For these reasons, we stay long on gold."
The bottom line
Investors have long sought gold as a store of value and hedge against inflation, making it an option worth considering now. Bear in mind, experts commonly recommend allocating no more than 10% of your portfolio to gold and other precious metals. It's also a good idea to consult your financial advisor to assess whether gold suits your overall financial plan.
If you do decide you want to invest in gold, make sure you choose the best type of gold to invest in.
"Overall, buying physical gold is best for long-term investors," says Ebkarian. "If you are day trading or looking for short-term ROI, consider trading gold ETFs."
