What’s Next for Gold After Breaking its Record-High Price? ($2,135/oz.)

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Last Updated on: 12th January 2024, 02:33 pm

This year's holiday newsletter will be a bit different. Rather than a full market recap, we have very important sector-specific news to share:

In December 2023, gold broke through a critical resistance point at $2,070—its previous all-time high set in August 2020—to reach a high of $2,135. Despite a market correction that has seen gold cool off into the mid-2000s, gold prices have never been higher than they were that month.

Geopolitical risks, a weak US dollar, and a dip in bond yields are largely to blame. 

All indicators are directionally bullish right now for gold. The Euro (which is inversely correlated to the USD), the yield curve, and inflation all point to sustained strong gold prices for the foreseeable future. 

That's why we've seen the yellow metal spike over 3.45 percent in the past six months and nearly 2 percent in the last 30 days alone. 

Many are eyeing gold to sustain price levels above $2,100 per ounce throughout 2024. Others are far more bullish, setting price targets at $2,175 (Morgan Stanley) and $2,400 (Bank of America). 

Market Snapshot: December 18, 2023

• Inflation Rate: 3.1%
• Fed Rate: 5.5%
• Gold Price: $2,026/oz.
• Silver Price: $23.76/oz.
• Bitcoin Price: $41,621 per BTC (+13.77% over last 30 days)
• Ethereum Price: $2,168 per ETH (+10.5% over last 30 days)

Market fundamentals suggest that gold prices will continue to rise in the year ahead. Uncertainty, geopolitical risk, and inflationary pressures have put gold in an advantageous position relative to conventional assets. 

There's a reason why central banks are buying gold at rates we've never seen before. Central banks in the U.S., China, Turkey, and elsewhere added hundreds of tonnes of gold to their coffers in Q3 2023, continuing their rapid hoarding campaign that began in 2021. 

Unlike gold, fiat currencies and speculative, paper-based assets cannot adequately hedge against economic or geopolitical disaster. Gold, on the other hand, has proven itself to be the go-to safe-haven asset amid deep market uncertainty for investors and central bankers alike. 

2024 is looking like a record year for gold. Now could be the time to load up. 

If you’re considering taking a position in gold, make sure you read our exclusive reviews of the top gold IRA companies. We've vetted the top service providers in the industry that offer alternative assets such as gold within a low-cost, tax-advantaged account structure. Talk to your financial advisor today to decide if precious metals diversification is right for you.