Gold Prices Reach All-Time High in August 2024
In August 2024, the price of gold per ounce surpassed the $2,500 USD mark, setting a new record. This year's increase in gold value is primarily due to increased demand from central banks in the face of a complex geopolitical and financial landscape. According to a survey conducted by the World Gold Council in April 2024, 29% of central bank respondents plan to increase their gold reserves in the next 12 months.
Visualizing Gold Prices Over Time
This information is presented in a graphic by Visual Capitalist's Kayla Zhu, which depicts the price of gold per troy ounce in USD from 1989 to August 29, 2024. The graphic also shows the change in price for each U.S. president’s term. The data is sourced from the World Gold Council, which compiles price data from ICE Benchmark Administration and the Shanghai Gold Exchange.
Gold Prices and Presidential Terms
The graphic illustrates the change in the price of gold per troy ounce in USD at the beginning and end of each U.S. president’s term. The data for President Biden is calculated up to August 29, 2024.
Gold is traditionally viewed as a safe-haven asset during periods of geopolitical uncertainty and economic instability. While gold’s prices rose by over 50% under Trump’s presidency, and by another 37% during Biden’s, the most significant increase of 215% (since 1989) occurred during George W. Bush’s presidency.
Gold Prices and Global Events
The surge in gold prices during Bush’s presidency from 2001 to 2009 was primarily due to the 9/11 attacks and the ensuing geopolitical instability. The 2008 global financial crisis, however, caused a 30% dip in gold prices due to fears of deflation and a flight to the safety of the U.S. dollar.
Significant events such as 9/11, the COVID-19 pandemic, and the Ukraine-Russia war have all led to substantial increases in gold prices as investors seek stability in turbulent times.
Future Predictions for Gold Prices
Analysts at Citigroup predict that gold prices will exceed $3,000 by the end of 2024, regardless of whether Donald Trump is reelected or Kamala Harris becomes the first female president of the U.S.
For more information on the recent performance of gold in the markets, refer to this graphic that shows the value of a gold bar in various sizes as of August 2024.
Bottom Line
The price of gold has historically been a reliable indicator of global economic and geopolitical conditions. Its recent surge to an all-time high is a testament to the complex and uncertain times we are living in. Whether this trend will continue remains to be seen. What are your thoughts on this? Share this article with your friends and discuss. Don't forget to sign up for the Daily Briefing, which is available every day at 6 pm.
