In early October, gold was valued at around $1,820 according to Kitco. That is fairly close to its low for the calendar year. Its previous low came in late February, at $1,811.
However, since the start of the fourth quarter, the price of physical gold has skyrocketed, briefly crossing above $2,100 per ounce and reaching new all-time high levels earlier this week. Although its price has fallen back somewhat since then, the cost of gold remains elevated.
Factors Underlying Gold’s Rise
In a recently published article from Kitco, author Jim Wyckoff said the metal, “remain[s]supported by still-overall-bullish technical charts, a generally depreciating U.S. dollar on the foreign exchange market, generally falling bond yields, ongoing safe-haven demand, and notions the major central banks of the world will back off on their interest-rate-increase cycles.”
Worries over geopolitical tensions are likely contributing to the upward pressure on gold’s price. In the past, such concerns have contributed to a higher demand for assets like gold.
Many experts expect gold’s recent growth to carry into the new year. Some even predict that gold’s price will remain strong throughout 2024, with prices holding steady above $2,000/oz. That’s not an entirely unreasonable expectation. Earlier this year, the World Gold Council released a survey noting “24% of central banks intend to increase their holding reserves in the next 12 months.” Not only is that likely to provide support for current prices, it could stimulate even greater demand.