With all the uncertainly surrounding today's economy and political climate, more people are turning their interest toward gold, and for good reason: Gold prices have hit an all-time high.
Gold had a 13% annual rise in 2023, hitting a record high of $2,148.78 an ounce in early December. As prices continue to sit in record territory, more and more people are buying up the precious yellow metal.
"It's record numbers of people both buying and selling," Jeff Rubenstein, owner of Carolina Silver and Gold in Greensboro, North Carolina, told Spectrum News. "It's gotten very interesting with the situation in the Middle East and all the unrest in the economy, it just propels the metal prices up."
Experts predict that following a surprisingly robust performance in 2023, gold will see further price gains in 2024 with record-breaking prices. Investment bank J.P. Morgan is expecting a "breakout rally" for gold by mid-2024 and is anticipating prices to peak around $2,300 an ounce, CNBC reported.
"The growing confidence that the US Federal Reserve has ended its cycle of interest rate hikes and could start cutting rates as early as spring will drive the gold price," Henrik Marx, head of trading for Heraeus Precious Metals, said in a statement.
A Reuters poll in October forecast prices will average $1,986.50 an ounce in 2024. Last year, prices averaged above $1,950 -- higher than any previous yearly average price.
Interest rate cuts make investments in interest-free assets such as gold more attractive and typically weaken the value of the dollar, according to Heraeus. As gold is predominantly traded in dollars, a weaker dollar makes the precious metal cheaper on the global market, which ensures stronger demand and therefore higher prices.
"Despite high yields on the US bond market and a strong US dollar, gold has done very well -- this points to a clear upward trend," Marx said.
Heraeus expects a range of $1,880 to $2,250 an ounce in 2024.