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Gold Rush To Endure Through 2024, Though $3,000 Mark May Prove Elusive

The comments below are an edited and abridged synopsis of an article by Brijesh Patel and Ashitha Shivaprasad

Gold’s lightning rally to successive record highs shows every sign of continuing in the second half of 2024. The fundamental case for bullion remains firmly in place, though traders and industry experts suggest that $3,000 per ounce may be just out of reach.

Gold Rush  Endure Through 2024, Though $3,000 Mark May Prove Elusive - BullionBuzz - BMG
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Driving Factors Behind Gold’s Surge

Investors have flocked in droves towards the precious metal, driven by several key factors:

1. Monetary Easing Expectations: The anticipation of monetary easing policies has made gold an attractive investment.

2. Geopolitical Tensions: Ongoing geopolitical unrest in Europe and the Middle East has further driven investors towards gold.

3. Central Bank Purchases: Notably, China has been leading the charge in central bank gold purchases.

Currently, spot gold is trading around $2,300 per ounce after hitting a record $2,449.89 on May 20, gaining more than 11% so far this year.

China’s Influence on Gold Prices

Ruth Crowell, CEO of the London Bullion Market Association, highlighted China’s significant role in driving the gold price. Speaking at the Asia Pacific Precious Metals conference in Singapore, she noted, “Usually China and Japan have been budget shoppers, but given the state of the economy, real estate challenges, and equity markets, gold is a safe choice… I think gold is going to be of interest for some time.”

Central banks, particularly in China, have been increasing their gold reserves as a safeguard against currency depreciation and geopolitical and economic risks. Historically, bullion has been a favoured hedge against such risks, especially thriving in low-interest-rate environments.

Market Projections

Despite strong physical demand for gold, retail investment demand, such as from exchange-traded funds in the US, has yet to significantly increase. Amar Singh, Head of Metals – Asia Pacific and Middle East at StoneX, anticipates that the price could easily reach $2,600 – $2,700 this year.

However, the possibility of gold surpassing $3,000 per ounce appears remote at this point. Nikos Kavalis, managing director of Metals Focus, remarked, “It’s not a case of some particular factor holding back gold but rather that $3,000 would mean another 30% from here, which is quite a lot given we have already had some hefty gains.”

Silver’s Performance and Future Outlook

Silver, both an investment asset and an industrial metal used in electronics and solar panels, has also performed well on the back of gold’s strength and firm physical demand. The metal is currently trading at around $30 per ounce, close to a more than 11-year peak scaled in May.

Michael DiRienzo, president & CEO of The Silver Institute, commented, “The future is bright for silver with respect to its use in green energy transition. Also, there is further room for gold prices to go higher and silver prices will follow as well.”

India’s silver imports in the first four months of the year have already surpassed the total for all of 2023, driven by rising demand from the solar panel industry and investor bets on an outperformance versus gold. The silver market is currently in the fourth year of a structural market deficit due to expectations of higher industrial demand, according to Metals Focus.


As we move through 2024, the bullish trends for both gold and silver appear set to continue, bolstered by a confluence of economic, geopolitical, and industrial factors. While the $3,000 per ounce mark for gold may seem a stretch, the ongoing demand and strategic purchases by central banks, particularly in China, keep the outlook positive. Silver, too, is poised for significant gains, driven by its industrial applications and investment appeal. As always, investors should remain vigilant and informed, ready to adapt to the ever-changing market dynamics.