Gold has been one of the best performing assets in 2024, reaching new all-time highs due to deteriorating economic conditions and debt printing. Earlier this month, gold hit a record high of $2,607 an ounce, rising more than 25% year-to-date. This rally is due to expectations of lower yields, macroeconomic and geopolitical uncertainties, and dollar diversification by central banks.
UBS (Union Bank of Switzerland) projects that the gold price could reach $2,700 an ounce by mid-2025, driven by demand for gold ETFs (Exchange-Traded Fund) and geopolitical tensions. They recommend a 5% allocation to gold in a dollar-diversified portfolio.
Silver, although a laggard, will benefit from the rising gold price and is expected to outperform gold over the next 12 months. As for platinum, its market shortfall suggests that prices could rise, despite a weaker vehicle market and lower industrial demand.
In summary, gold remains a preferred hedge for geopolitical and rate risks, with expectations that its rally will continue for the foreseeable future.
Mike Maharrey. "A major media news report reveals five reasons to buy gold." Money Metals.