Gold prices are skyrocketing in the charts this year in 2024 printing new all-time highs every week. Investors who took an entry position in gold early this year made heaps of profits in a short period. The XAU/USD chart shows gold prices at the 2,382 level with a spike of four points in a day. That’s a surge of 0.14% during just the opening bell on Friday.
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Julia Khandoshko, CEO of the European stock brokerage Mind Money explained exclusively to Watcher Guru why gold prices shot up in 2024. Khandoshko explained that not just retail investors, but institutional funds and even governments across the world are on a gold buying spree.
Retail Investors, Funds & Governments Are Buying Gold in 2024 Driving Up Prices, Analyst Explains
Gold prices are looking to climb above the $2,500 mark this quarter and might aim to hit $3,000 this year. The Mind Money CEO stressed that the question is not about gold reaching $3,000, but it’s a matter of when.
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“The question is not whether gold will reach $3,000, but when it will. This is related to the number of current events that can push gold to the top,” she said to Watcher Guru. She added that the crisis in the Middle East between Iran-Israel-Palestine and the Russia-Ukraine war acted as a catalyst for gold prices to head north.
“Gold has historically acted as an inflation hedge due to its unique ability to act as the sole alternative to fiat currencies that largely drive inflation through monetary policy. Today, the world is in a deep crisis caused by heightened geopolitical tensions and reduced trust in reserve currencies,” she said.
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“The price of gold is further influenced by discussions surrounding the US Federal Reserve’s potential easing of monetary policy. The potential reduction in the Fed rate only fuels demand for gold, as low rates typically have a positive impact.
Given the prevailing instability, it is not surprising that funds, private investors, and even governments are flocking to gold as a protective asset. This surge in demand is driving prices to new heights, with gold constantly setting new records,” she summed it up.
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