What are the gold price expectations for December 2024?
High demand for gold
All of these things led to an increase in demand for gold and thus an increase in its prices. In fact, the average price of gold reached record high levels several times this year, exceeding $2,700 by last October.
Although prices have fallen slightly since these highs were achieved, they are still much higher than they have been seen most of the time in recent years.
But where do prices go next and is gold still a smart money investment?
What are the gold price expectations for December 2024?
Experts say about gold price expectations this month that anything is possible, in light of the large increase that occurred recently, as well as during the past year or two, in which gold prices easily gained great momentum, which indicates the possibility of rising during this December and perhaps in the coming months.
Buy more gold
Keith Weiner, CEO of Montemental Metals, said: “There is one thing that could push gold prices down, which is a credit crisis, if all assets are sold to raise money quickly to pay off debts. Perhaps a crisis is coming, although it is difficult to say.” It will happen this month… and it seems that all the other expected events – war in the world, government extravagance in spending and debt, and geopolitical shifts – are all influential and perhaps likely to push more people to buy more gold.”
For these reasons, Weiner says, gold has “much greater upside potential than downside risks in the short term, and it is even likely that the gold market will continue to rise as all macroeconomic and geopolitical factors are still operating in full force.”
Possibility of gold falling
On the other hand, Drew Martino, wealth manager at Savvy Wealth, believes that there is a chance that gold prices will continue to decline, as has happened in recent weeks, and that this could be a good thing.
Read also: The price of gold continues its upward march, but “in small steps”
Martino says: “We never recommend buying gold based on short-term trends. If you buy gold, you should ask yourself what the price will be ten years from now, not next month.”
With this time frame in mind any sustained decline in prices may actually work to the investor’s advantage.
Martino adds: “If I had to predict the price of gold in the short term, I would say that gold will continue downward pressure until the end of the year, which creates an attractive entry point for the long-term investor.”
Gold and political uncertainty
In the meantime, according to analysts, political uncertainty will have a factor in this, as one of the factors that could constitute a major obstacle in the path of gold is the change in political administrations.
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“In the run-up to the election the price action stalled and then with the news of Trump’s victory the correction began,” Weiner says. “Many industry observers had been anticipating this for a long time and what is interesting is that the correction was fairly shallow at around 10% and appears to have ended.”
Gold forecasts in the Trump era
For his part, James Cordier, a market and metals analyst, believes: “The next presidential administration in America may also affect gold prices depending on what it does to reduce consumer prices.”
Therefore, investors are likely to move less towards gold and more towards other assets, which may lead to a decline in gold prices, as the average return on gold ETFs has reached about 6%, while the average return on spot gold has reached about 8% over the past thirty years.
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