2024 Gold Price Crash: A Potential Scenario in Crypto Perspective

• Potential 2024 Crash of Gold Price Raises Investor Concern
• Is a Gold Price Crash Likely in 2024?
• Gold's Performance and Impact of Economic Factors
• Gold Price and Interest Rates

Potential 2024 Crash of Gold Price Raises Investor Concern

Despite the new all-time high of gold, its recent correction from $2,152.30 has sparked concerns among investors. Prospects for the coming year may prove crucial in defining its investment worth. The current gold price stands at $2029.30, reflecting an increase of over 10% in the past 24 hours. Yet, predictions of an impending correction followed by a steep downfall have surfaced.

Is a Gold Price Crash Likely in 2024?

Volatility is a common feature of investment assets, with gold being no exception. After reaching a new all-time high, the price of gold has seen a correction. Some speculate a disastrous crash is looming in the coming year.

However, the theory of a gold price crash in 2024 lacks substantial evidence. A downturn in the gold price would typically relate to significant positive economic shifts in the United States. While an ascension usually coincides with negative economic situations, a gold price crash due to favorable economic changes seems less plausible.

Gold's Performance and Impact of Economic Factors

So far, gold's price has shot up an impressive 14% year on date, resulting in increased optimism and speculation as 2023 winds down. The available data suggests a continued uptrend is much more realistic than a crash. Even if a price decline occurs, it is unlikely to drop to the lows of 2022.

The majority of gold price gains happened in October, with the precious metal trading sideways for most of the year. The rally is largely attributed to the anticipation of the Federal Reserve's actions. With expectations of interest rate cuts for the first quarter of 2024 in sight, the gold price could be affected.

Gold Price and Interest Rates

ING is currently predicting interest rate cuts throughout 2024. They project a cut of 150 basis points in the coming year. If this happens, the gold price is expected to respond positively. Specifically, fears of inflation could trigger an increase in the gold price, with many turning to the precious metal as a financial safeguard.

Edited by Jonathan Stoker