How Much Higher Could the Gold Price Go?

rising price of gold

Recent momentum in the gold price has pushed it up to nearly $2,200 an ounce, a new all-time high. It’s a level that many people didn’t think was going to happen for a while. But strong safe-haven buying has helped propel the gold price upward.

With strong support at the $2,150 level, it doesn’t look like gold is going to be falling back anytime soon. So how much higher could the gold price go?

What the Experts Say About Gold

Some technical analysts have gotten bullish about gold. And in their opinion, if gold is able to break through the $2,200 barrier, it could accelerate from there to $2,400 in the near future.

Sometimes these price levels provide a psychological barrier that has to be overcome before prices really start moving. We saw that for a while when gold didn’t want to break through the $2,100 barrier, but once it broke through, it didn’t look back.

Now gold has broken through the $2,200 barrier. Will it get another chance to break through again and prove those predictions of a run to $2,400 correct?

The two major factors contributing to rising gold prices are the continued safe haven demand for gold, as well as the continued gold purchases by central banks. Both of those are running strong right now.

Safe haven demand has been elevated since at least 2020, particularly when it comes to purchases of gold coins and gold bars. And with the risk of recession ever present on the horizon, that safe haven demand should remain strong for quite a while.

If recession does occur, safe haven demand could increase even further, along with the gold price. We saw this in 2008 and its aftermath, when gold prices climbed for three years and rose to set all-time highs in the aftermath of the financial crisis.

Central bank demand has been strong, with China continuing to buy gold every month and numerous other countries adding to their coffers. With inflation remaining problematic throughout the world, gold offers stability that is highly in demand.

The other major impact on the gold market comes from the jewelry sector. Despite prices continuing to rise to all-time highs, gold jewelry demand has remained strong as well.

The Gold Price Outlook for 2024

With gold having shot up to nearly $2,200 so quickly, there’s every reason to believe that gold could continue to rise. Everything is in place for an increase in the gold price, and if the Federal Reserve ever starts cutting rates, as Wall Street expects it should, that could provide a further shot in the arm for the gold price.

At the beginning of the year many analysts were even expecting gold to remain under $2,000 for the first half of the year. Yet gold has already far surpassed those expectations, and has even surpassed end of the year target prices.

Much of the analysis of gold’s performance based itself on expectations for Federal Reserve rate cuts, with the expectation that continued high interest rates would keep the gold price depressed, and that rate cuts later in the year would help boost the gold price.

But gold’s performance thus far this year has shown that relatively high interest rates aren’t having a negative impact on the gold price, and that interest rate cuts aren’t necessary for the gold price to increase. And if the gold price is climbing this well with high interest rates, just imagine how much higher gold prices might climb once rates start to get cut.

Take Advantage of Gold

To say that gold is unpopular with the financial mainstream is a bit of an understatement. For decades gold was a reminder of what used to be, of bygone days of price stability and sound monetary policy.

That’s why governments tried to suppress gold through any means they could, including through selling gold on the open market to keep the gold price down. But those measures all failed in the end.

Over the past 20-odd years gold has shaken off attempts to suppress it and has really begun to shine. Since 2001, annualized growth in the gold price has far exceeded the growth of stock market indices.

Many people who bought gold “before it was cool” have reaped the benefits of their gold ownership since then. And many others who have seen how gold has performed have wished that they had had the foresight to buy gold.

That was especially true during the 2008 financial crisis, when gold gained 25 percent during the same period that stock markets lost over 50 percent (October 2007 to March 2009). How many people vowed back then that the next time a financial crisis threatened, they would protect themselves with gold?

Well, now is their chance. With markets looking eerily similar today to how they looked in late 2007 and early 2008, this could be the chance for gold to break out. And buying gold now could help you take advantage of any future price growth.

Since 2008, one method of buying gold that has grown in popularity has been the gold IRA. A gold IRA operates under the same rules as any other IRA, only that it purchases physical gold coins and gold bars rather than shares of bonds, stocks, or funds like a conventional IRA.

A gold IRA can be funded with a tax-free rollover from an existing 401(k), 403(b), TSP, IRA, or similar retirement account, allowing you to protect your tax-advantaged savings with gold, without having to take a tax hit by distributing assets.

If you’re worried about what the future holds and are thinking about buying gold to protect your hard-earned assets, maybe it’s time to think about a gold IRA. With over $2 billion in precious metals placements and thousands of satisfied customers, Goldco has worked to establish itself as one of the best gold IRA companies in the industry.

Our commitment to quality gold products and exemplary customer service have helped make us one of the most trusted companies in the gold industry. Call Goldco today to learn more about how a gold IRA can help play a role in safeguarding your financial well-being.

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