Gold prices rise by 27.7 percent in 1st 9 months of this year
Date
10/6/2024 4:46:50 AM
(MENAFN) Gold prices experienced a remarkable surge of 27.7 percent in the first nine months of 2024, largely driven by a flight to safe-haven assets amidst escalating tensions in the Middle East. This spike reflects a growing trend among investors who seek stability in precious metals during times of geopolitical uncertainty. Additionally, the continued purchasing of gold by central banks has significantly contributed to this upward price trajectory, as these institutions stockpile gold as a hedge against economic instability.
Analysts are optimistic about gold's future prospects, forecasting that prices could potentially climb to USD2,900 per ounce. This anticipated increase is attributed to several factors, including the Federal Reserve's ongoing rate cuts, which make holding non-interest-bearing assets like gold more appealing due to lower opportunity costs. The trend of central banks accumulating gold further reinforces its status as a reliable store of value, particularly in volatile economic environments.
In addition to gold, silver has also demonstrated impressive performance, posting a substantial gain of 31 percent from January to September. Analysts predict that silver prices could reach as high as USD40 per ounce in the coming year, fueled by similar safe-haven demand and industrial applications. Palladium, too, is expected to rise in price, aligning with broader trends in economically sensitive commodities, although it has faced some challenges recently.
Conversely, platinum prices saw a decline of 1.2 percent during the same period, while palladium experienced a more significant drop of 8.8 percent. This divergence in performance among the precious metals highlights the complex dynamics at play in the market. Meanwhile, copper prices rose by 17.6 percent, indicating a positive sentiment in industrial metals amid the overall bullish trends observed in the commodities sector. As market conditions continue to evolve, investors will be closely monitoring these trends to make informed decisions regarding their portfolios.
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