There is no denying that it’s been quite an exciting year so far for Gold. The yellow metals unstoppable rise to glistening new heights has continued to go from strength to strength – outperforming Bitcoin, the S&P 500 and even the Magnificent Seven stocks in 2024.

Gold has been on an epic run since October 2023 – rallying from near the $1,800 level to score consecutive back-to-back all-time highs – not once, not twice, but on 37 separate occasions, so far this year.

Last week, Gold prices skyrocketing to a new all-time record high of $2,685 an ounce, surpassing the precious metals previous all-time high of $2,670 an ounce reached only a day earlier – extending its gains by an impressive 49%, over an 11-month stretch.

According to analysts at GSC Commodity Intelligence – the precious metal is being driving by "a multitude of bullish tailwinds" including the ongoing de-dollarization movement taking shape globally, with Central Banks around the world continuing to accumulate Gold at a record-setting pace.

The global pivot to lower interest rates. Alongside, growing instability in China’s economy, forcing Beijing to launch its most attention-grabbing economic stimulus package since the 2008 Global Financial Crisis.

The significance of these two factors alone cannot be understated. That’s because China’s massive stimulus measures could very quickly reignite global inflation, at the same time, when the U.S Federal Reserve is aggressively cutting interest rates.

And last but definitely not least – escalating concerns over ballooning global debt and uncontrollable government borrowing, which currently sits at record $315 trillion. This in itself is yet another major catalyst fuelling a global rush for Gold – making allocation for precious metals in a diversified portfolio an essential necessity.

The exceedingly high debt levels across the world’s major economies heightens the chances of not one, but potentially multiple debt crises ahead.

Over in the United States, the Congressional Budget Office forecasts that the U.S debt-to-GDP ratio will exceed 150% by 2034, from 98% at present. Put another way, that will slingshot the nation’s debt to the highest levels in U.S history.

To quote analysts at GSC Commodity Intelligence, “the next 10 years will be known as the Decade of Debt”.

Interestingly, there is a historically strong correlation between U.S debt and Gold prices. Conclusive evidence shows during the period U.S national debt has ballooned from 5 trillion to 35 trillion dollars – Gold prices have risen by 10x since 2000. That's a whopping gain of over 826% since the beginning of the century.

But here's where things really start to get interesting. If history repeats itself, Gold prices could reach $5,000 an ounce when U.S debt hits the 70 trillion dollar mark.

This ultimately means one thing. Gold’s secular bull market is only just getting started!

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:

Trading has large potential rewards, but also large potential risk and may not be suitable for all investors. The value of your investments and income may go down as well as up. You should not speculate with capital that you cannot afford to lose. Ensure you fully understand the risks and seek independent advice if necessary.

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD trades sideways below 1.0450 amid quiet markets

EUR/USD trades sideways below 1.0450 amid quiet markets

EUR/USD defends gains below 1.0450 in European trading on Monday. Thin trading heading into the Xmas holiday and a modest US Dollar rebound leaves the pair in a familair range. Meanwhile, ECB President Lagarde's comments fail to impress the Euro. 

EUR/USD News
GBP/USD stays defensive below 1.2600 after UK Q3 GDP revision

GBP/USD stays defensive below 1.2600 after UK Q3 GDP revision

GBP/USD trades on the defensive below 1.2600 in the European session on Monday. The pair holds lower ground following the downward revision to the third-quarter UK GDP data, which weighs negatively on the Pound Sterling amid a broad US Dollar uptick. 

GBP/USD News
Gold price sticks to modest gains; upside seems limited amid USD dip-buying

Gold price sticks to modest gains; upside seems limited amid USD dip-buying

Gold price attracts some follow-through buying at the start of a new week and looks to build on its recovery from a one-month low touched last Thursday. Geopolitical risks stemming from the protracted Russia-Ukraine war and tensions in the Middle East, along with trade war fears, turn out to be key factors benefiting the safe-haven precious metal. 

Gold News
Let’s focus on the good for a few more days

Let’s focus on the good for a few more days

Last week was chaotic. The Fed’s hawkish 25bp cut, the hint from the dot plot that there would be only two rate cuts next year instead of four – because the US economy is too strong to continue the cuts as previously predicted - and the US debt limit shenanigans even before Trump took office gave a negative jolt to the US stock markets.

Read more
Bank of England stays on hold, but a dovish front is building

Bank of England stays on hold, but a dovish front is building

Bank of England rates were maintained at 4.75% today, in line with expectations. However, the 6-3 vote split sent a moderately dovish signal to markets, prompting some dovish repricing and a weaker pound. We remain more dovish than market pricing for 2025.

Read more
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

Majors

Cryptocurrencies

Signatures