Gold performance 2024 and how much will gold price increase in Q4?

Gold price gains positive traction for the second straight day amid bets for additional Fed rate cuts. Gold prices have shown strong upward momentum in 2024. In the first three quarters, gold surged significantly, reaching an all-time high of around $2,685 per ounce in Q3. Analysts expect gold to continue its strong performance, with forecasts ranging between $2,600 and $3,000 by the end of 2024.

How much gold price has increased so far in 2024?

Gold performance in 2024 has been marked by strong and steady growth. Starting the year at $2,063.73 per ounce on January 1, the price surged to $2,502.53 by August 28, reflecting an increase of $438.80, or 21.26% in less than eight months.

The price of gold has surged by 45.93% over the past year, with a 6.58% rise in just the last 30 days. As of October 3, 2024, gold was trading at $2,642.45 per ounce, and experts predict it could reach a historic $3,000 before the year ends. Fluctuations in the past six months, gold continues to rise. He mentioned that the rapid climb in prices could see gold hit $3,000 within a 30-day period.

This spike is driven by several factors, including the Federal Reserve's recent interest rate cuts, increased interest from investors, and heightened geopolitical instability, particularly due to the ongoing conflict in the Middle East. Gold is traditionally seen as a safe-haven asset, especially during periods of uncertainty and conflict, making it an attractive investment option under current global conditions.

For context, an initial $10,000 investment in gold at the beginning of the year would now be worth around $12,126, netting a profit of over $2,000. This growth has positioned gold as one of the top-performing assets in 2024, outpacing many other investment alternatives.

While gold reached a peak of $2,525 per ounce on August 20, its current price of $2,502.53 represents a small dip. Such fluctuations are typical in financial markets and likely indicate a period of consolidation after a significant upward movement. Gold's strong performance continues to attract investors, especially during times of economic uncertainty.

Gold price gains positive traction amid bets for additional Fed rate cuts

Gold prices (XAU/USD) pull back slightly from a three-day high, hovering around the $2,640 mark during early European trading on Friday. Despite the dip, gold remains up by over 0.40% for the day. This rise was supported by an increase in U.S. weekly jobless claims, signaling potential weakness in the labor market. Such data bolsters expectations that the Federal Reserve will continue cutting interest rates, leading to a slight drop in U.S. Treasury yields. This decline in yields, combined with a more cautious market sentiment, has allowed gold to maintain its upward momentum for the second consecutive day.

At the same time, market participants have dismissed the possibility of another large rate cut by the Fed in November, following stronger-than-expected U.S. inflation data released on Thursday. This shift has temporarily propped up the U.S. Dollar, preventing a further pullback from its recent highs and creating a headwind for gold prices. Traders are now focusing on upcoming U.S. economic data, including the Producer Price Index (PPI), the Preliminary Michigan Consumer Sentiment Index, and various Fed speeches, which could provide further direction for the market.

How much will gold price increase in Q4?

Gold prices are expected to continue their upward trajectory in the final quarter of 2024. Analysts project that prices will likely hover around $2,500 to $2,700 per ounce, with the possibility of reaching up to $3,000 by year-end. This outlook is supported by several key factors, including anticipated Federal Reserve rate cuts, ongoing geopolitical tensions, and central bank demand for gold.

The recent surge in gold prices is partly due to expectations of a dovish monetary policy by the Fed, which may further cut rates by up to 75 basis points before the year ends. Additionally, geopolitical instability, particularly in the Middle East, continues to drive investor demand for gold as a safe-haven asset.

Investors should watch for price volatility during this period, as it may present buying opportunities ahead of another potential spike.

When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.

Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.