Gold Dominates Financial Markets in 2024, Outperforming U.S. Stocks
In a year filled with financial ups and downs, gold emerged as the shining star of 2024, surpassing even the red-hot U.S. stock market. The yellow metal saw a remarkable 26.5 percent price increase, setting multiple new records along the way. With 40 new all-time highs and a peak price of $2,777.80 per ounce, gold proved its worth as a top-performing asset.
The World Gold Council attributed gold’s success to strong central bank and investor demand, geopolitical tensions, and periods of low yields and a weakening U.S. dollar. These factors, combined with a surge in post-election cryptocurrency prices, helped gold outshine traditional asset classes like U.S. bonds, commodities, and global treasuries.
But let’s not overlook silver, which also had a solid year in 2024. Despite remaining below its all-time high, silver saw a 20.5 percent gain, outperforming emerging market stocks, U.S. bonds, and other assets. Analysts believe silver is currently underpriced, with a supply deficit and a high gold-silver ratio signaling potential for future growth.
Looking ahead to 2025, many experts predict that the gold bull market will continue. JP Morgan forecasts gold reaching $3,000 per ounce this year, citing ongoing uncertainty in the macroeconomic landscape. If Western retail investors jump into the market and central banks maintain their demand, we could see another surge in gold prices.
Overall, the performance of gold and silver in 2024 highlights the importance of diversifying investment portfolios and staying informed about market trends. Whether you’re a seasoned investor or just starting out, keeping an eye on precious metals like gold and silver could help protect your finances in an ever-changing economic climate.