Precious Metals Outlook: Gold and Silver Shine in First Half of 2024

The precious metals market, particularly gold, has been a hot topic in the first half of 2024. Let’s take a closer look at the performance and future prospects of these valuable commodities.

First Half Performance

Gold and silver have seen impressive gains in the first six months of the year:

  • International gold prices: Up over 12%
  • International silver prices: Up over 22%

As of June 28, 2024:

  • London spot gold closed at $2,326.15 per ounce
  • COMEX gold futures closed at $2,336.9 per ounce

Both represent increases of approximately 12% and 13% respectively since the start of the year.

Second Half Outlook

Experts suggest that the factors influencing gold prices are in a state of flux. While there’s potential for further price increases in the second half of the year, caution is advised, particularly regarding the risk of price weakness in the fourth quarter.Key points to consider:

  1. The Federal Reserve’s interest rate decisions will likely be a major factor influencing gold prices.
  2. Short-term, gold and other commodities may experience some volatility due to rising interest rates and a comparative economic slowdown.
  3. The probability of gold prices rising in the second half of the year is still greater than the probability of a decline.

Long-Term Perspective

In the long run, gold prices are considered to be in an upward trend. This is supported by:

  1. Increased global economic uncertainty
  2. Geopolitical instability
  3. Gold’s status as a safe-haven asset

Price Predictions

  • Short-term: Gold prices are expected to fluctuate between $2,250 and $2,350 per ounce.
  • Medium to long-term: The onset of a dollar rate cut cycle, combined with uncertain geopolitical factors, may provide opportunities for gold prices to rise further.

In conclusion, while the precious metals market, especially gold, has shown strong performance in the first half of 2024, investors should remain vigilant and consider both short-term volatility and long-term trends when making investment decisions.