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Market Trend
The upward trend in the gold market continues to show strength due to several key factors. In 2024, central banks are still purchasing gold to diversify their international reserves, a move driven by geopolitical volatility and sanctions against Russia, which led many countries, especially in Asia, to reduce their dependence on dollar- and euro-denominated assets.
Demand remains strong in regions such as China, where gold consumption increased during the Lunar New Year thanks to Chinese consumers’ preference for protecting the value of their assets amid economic uncertainty. Moreover, although some ETFs (exchange-traded funds backed by gold) have seen outflows as investors seek returns in other assets, the price of gold has held its value or even reached higher levels.
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The expectation that the U.S. Federal Reserve will lower interest rates in 2024 has also contributed to the rebound of gold, since lower rates tend to increase the attractiveness of this metal as a safe-haven asset.
These dynamics highlight that gold remains a popular and secure investment in times of economic and geopolitical instability, especially as both institutional and retail investors view it as a tool for preserving long-term value.