Investing in Gold: Strategies, Forecast, and Tips for 2024 | Expert Insights, Trends, and Comprehensive Guide

Gold is a commodity and a necessary international substitute correlated with the values of other financial assets and world currencies. Its appeal lies in its limited availability, its relevance in the industry and its role as a fundamental component of many central banks’ gold and foreign exchange reserves. Gold does not depreciate, in contrast to stocks and currencies. In fact, because of its scarcity, its value actually tends to rise with time. When it comes to trading, gold is mostly an investment for the long run. It is considered a protective asset that appreciates during times of global crisis, particularly when stock index and currency prices decline relative to the US dollar. On the other hand, its price tends to decrease in periods of global economic expansion.

Gold Price Forecast

For investors in India, the Multi Commodity Exchange (MCX) offers a platform to trade gold futures, providing opportunities to capitalize on price movements and hedge against currency fluctuations and economic uncertainties.

The current price of Gold for 10g of 24 karat gold (99.9%) in India is 73,965.00 Indian Rupee, which is the highest in the history of Gold price. Hence, investing in gold is a smart move to fight inflation and diversify your portfolio, especially in India. Even after reaching 73k for just 10g, the demand for gold and its product is very high in the market. Let’s analyse the various forecasts and updates from several sources and experts-

The price of gold is influenced by several key factors like economic policies, geopolitical tensions, and central bank activities. When there is movement in any of these, Various financial institutions and analysts provide their gold price prediction for the coming years.

Economic and Monetary Policies: The Federal Reserve’s monetary policy will important role in determining the trajectory of gold prices in 2024. Professionals are expecting that the Fed might implement rate cuts ranging from 0.75% to 1% in 2024, which could lower interest rates to around 4.6% by the end of the year. Hence, such a reduction in rates makes non-interest-bearing assets like gold more attractive, which increases the price of gold and potentially reaches $2,400 per ounce by the end of the year.

Geopolitical Tensions: Geopolitical events are another factor that influences the gold price. Right now, the conflicts between the Russia-Ukraine war and tensions in the Middle East making the gold price at its highest. These conflicts affect the investors and increase the gold price is shown. According to some forecasts, geopolitical risks could help gold prices rise to as much as $2,500 to $4,000 per ounce in extreme scenarios.

Central Bank Purchases: Central bank activity also affects the emerging market. Countries like China and India are increasing their gold reserves which increasing the gold price.  The demand has been high at central banks, because of the need to diversify reserve portfolios away from the US dollar amid geopolitical tensions. This trend is set to be maintained hence ensuring high gold prices for the remaining of the year 2024.

Market Predictions

Let’s analyse the various forecasts and updates from several sources and experts-

  • Taki Tsaklanos’ Gold Price Forecast: They predict the expected price of gold will be $ 2200 or more in 2024, because of its trend. They also stated that there is potential to rise to $2,500 in 2025.

  • Przemysław K. Radomski, CFA: They predict that gold might reach the top in early March, which happens so. The current price of gold is the highest in history. But they also stated that there are potential downward movements shortly. The market reaction to rumours and facts impacts the gold price, which brings it to the highest.

  • World Bank, IMF, and Leading Investment Firms: The World Bank forecasts an average gold price of $1,950 per ounce in 2024 and there is the possibility to increase gold price in future. The IMF expected an average gold price of $1,775 per ounce in 2024, based on global economic activity, inflation expectations, and financial market conditions. Other Goldman Sachs and JPMorgan Chase & Co. also stated the expected gold price can be $2,133 and $2,175 per ounce in 2024.

  • Bank of America: Bank of America predicts gold could reach $2,400 per ounce by the end of 2024 if the Fed cuts rates as anticipated (GoldSilver).

  • UBS Bank: UBS Bank forecasts gold to hit $2,200 by the end of the year (GoldSilver).

  • Goldman Sachs: Goldman Sachs expects gold to average $2,133 per ounce in 2024, with potential peaks higher due to safe-haven demand (GoldSilver).

  • Wells Fargo: Wells Fargo suggests a range of $2,100 to $2,200 per ounce, reflecting continued positive momentum (GoldSilver).

  • Incrementum AG projects: Incrementum AG projects a price of $2,500 per ounce by the end of 2024, driven by various economic uncertainties (GoldSilver).

Several experts and agencies in the field of gold give an expected gold price for 2024. Gold prices have been influenced by the “higher-for-longer” global monetary policy attitude; nonetheless, certain agencies and AI-based websites continue to be bullish about a projected surge of over $2,000 per ounce in 2024 and beyond.

 How can you invest in gold?

If you are thinking of investing in gold and silver, then it is a good idea for future planning as the gold price is increasing day by day. Here is a comprehensive guide on how to invest in gold with a strategic move for economic uncertainties-

  • Understand Gold Investment: Before diving into gold investment, it is important to understand that there are many forms to invest in gold. Gold can be purchased in physical form like gold bars, gold coins or some gold jewellery, which is popular among Indians. But there are also options like gold exchange-traded funds (ETFs), gold mutual funds, or gold mining stocks.

  • Research and Education: Now, educate yourself about the different investment vehicles available and their benefits and risks. Well, there is a higher chance to get a benefit with the gold investment, still understand the factors influencing the price of gold, such as economic indicators, geopolitical tensions, and market trends

  • Choose the right investment form: Select the most suitable form of gold investment for you.  Physical gold is tangible ownership and gold ETFs and mutual funds provide exposure to gold prices without the worry of storage and theft. In India, buying physical gold is popular, but investing in gold ETFs and mutual funds is also getting popular day by day.

  • Allocate Funds: Decide how much you want to invest to allocate to gold. Financial experts often recommend allocating 5% to 10% of your portfolio suitable for metals like gold and silver, etc.

  • Consider Costs: If you choose gold ETFs or mutual funds, then they include transaction fees, storage costs, management fees, etc. Investors have to pay for that.

  • Risk Management: Investing in gold can be valuable for you, but it is also essential to maintain a diversified portfolio that includes various asset classes such as stocks, bonds, real estate, and cash. Diversification improves long-term gains while reducing risk.

  • Entry Time: The right timing in the gold market is important to consider because it impacts your investment returns. Always keep an eye on the market trends, economic indicators, and geopolitical events, etc. that affect the gold prices. Investing a fixed amount in gold at regular intervals is our recommendation.

  • Storage and Security: If you purchase physical gold like bars, coins or jewellery, then make sure about the secure storage solution first. You can rent a safe deposit case in the banks, a private vaulting facility, or a reputable precious metals storage company. You can opt for anything which suits you. Remember there is no such hassle in the gold ETFs and mutual funds.

  • Monitor: After the investment, your job is not done. Stay informed about the gold market and regularly review your investment portfolio.

  • Seek Professional Advice: If it seems difficult for you, you can seek advice from a qualified financial advisor or investment professional. They can help you to invest in gold at the right time and many more.

Investing in gold can be an effective strategy for your future, but always plan it with the right research.

MCX Price Wala offers a comprehensive platform for accessing live gold rates, enabling investors to stay updated on price fluctuations and seize timely investment opportunities in the dynamic commodity market.

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