Gold and Silver Prices Surge in 2024 Amid Economic Uncertainty
In a remarkable turn of events, both gold and silver have experienced significant gains in the first nine months of 2024, outperforming U.S. stocks. According to a recent survey by Anadolu Agency, gold prices surged by 27.5%, reaching a spot price of $2,659 per ounce by the end of September, just shy of the historic high of $2,682 recorded earlier in the month. This upward trend is largely attributed to escalating fears of inflation and geopolitical tensions, prompting central banks worldwide to increase their gold reserves.
The World Gold Council reported that central banks purchased a staggering 483 tons of gold in the first half of 2024, marking the highest level of gold buying in that period. China's central bank has been particularly active, continuing its streak of purchases for the 18th consecutive month, raising its total holdings to 2,264.3 tons. Analysts from Goldman Sachs have adjusted their forecast for gold prices, predicting they could reach $2,900 per ounce by early 2025, driven by declining interest rates and robust central bank demand.
Meanwhile, silver has also seen a remarkable increase, with prices rising over 37% in the same timeframe, now standing at $33.5 per ounce. Investment firm Investing Heaven anticipates silver could hit $34.70 soon, with potential targets reaching as high as $50 by mid-2025. This surge in both precious metals comes as investors seek safe-haven assets amidst a volatile economic landscape, further highlighting the ongoing shift in investment strategies.
