Gold prices may reach $3,000 by year

With rising global geopolitical tensions and tr foreign exchange NFT withdrawalincreasing investor risk aversion, gold prices are expected to reach a record high of $3,000 per ounce by the end of 2024. According to Newsweek, gold prices have been climbing steadily since the beginning of this year. Although there have been pullbacks in between, the overall upward trend is strong, driving prices up by more than 45% since last year.

Recently, support for gold has been strengthened by the Federal Reserve's interest rate cuts, the Middle East war, and new investor interest. Gold has long been considered a safe-haven asset, especially during periods of increased global uncertainty. Michael Martin, VP of market strategy at TradingBlock, noted that major events like the Russia-Ukraine war and Middle East conflicts typically drive gold prices higher. He cited the Soviet Union's invasion of Afghanistan in 1979 as an example, during which gold prices doubled, historically demonstrating that geopolitical turmoil often coincides with a spike in gold prices.

Market analysts expect that the current escalation in the Middle East will further boost gold prices. The intensifying conflict between Israel and Iran, especially if Israel retaliates against Iran's nuclear facilities, could quickly propel gold prices past the $3,000 mark. Precious metals analyst Matthew Jones pointed out that gold will become a primary safe-haven asset, attracting more investors once regional warfare expands.

Not only geopolitical factors, but also sustained demand from central banks are supporting the rise in gold prices. Central banks in countries like China and India continue to increase their gold holdings, with the People's Bank of China having purchased gold for 18 consecutive months, further driving market demand. At the same time, individual investor interest in gold has significantly increased, with many first-time buyers entering the market in recent months, pushing gold prices up by 25% in the short term.

Additionally, tightening market supply is also supporting prices. Some investors are avoiding selling gold, exacerbating the market supply shortage, which further enhances the potential for gold prices to rise. C3 Bullion CIO Luciano Duke predicts that once gold prices break the $3,000 mark in the short term, a significant pullback will be hard to occur, and the likelihood of falling below $2,000 is almost zero.

Overall, the combination of geopolitical conflicts, Federal Reserve policies, and global investor demand for safe-haven assets continues to brighten the long-term prospects of the gold market. With the ongoing developments in the Middle East and the continuous growth of central bank purchases, gold may reach a new record high within 2024.

The market carries risks, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at one's own responsibility.