The rise in gold prices in 2024 has become a hot topic among investors around the world, including in Indonesia. Global gold prices have continued to surge significantly, reaching record highs several times. This situation presents a great opportunity for those who have already invested in gold or are considering doing so.
The rise in gold prices has not only caught the attention of major investors but also the general public, who are beginning to view gold as a safe haven for storing their assets. Especially in today’s digital age, purchasing gold has become extremely convenient with the emergence of digital gold.
Although high gold prices may deter some from buying, gold remains a relatively stable investment option amid stock market uncertainty and economic volatility. Moreover, if you want to start investing in digital gold at Treasury, you can begin with as little as Rp 5,000.
To learn more about the analysis of the rising gold price chart and the factors influencing it in detail, you can read the explanation below!
2024 Global Gold Price Increase
The gold price chart above shows the movement of gold prices in US dollars per troy ounce over the past year, with the latest data as of November 6, 2024. During this period, the price of gold rose by 39.17%, or approximately USD 771.28.
This increase reflects growing interest in gold as an investment instrument. The lowest price recorded was 1,938.24 USD per troy ounce, while the highest reached 2,788.36 USD per troy ounce. The global gold price chart above also shows significant price fluctuations over the past year.
At the beginning of the year, gold prices were relatively stable around the 2,000 USD level, but began to rise sharply since March 2024 due to global economic uncertainty, which drove demand for safe-haven assets like gold. After this increase, gold prices continued to fluctuate but generally trended upward.
The gold price closed at 2,740.24 USD per troy ounce, indicating a sustained upward trend throughout the year. This gold price chart shows that gold remains in demand as a store of value, particularly amid global economic uncertainty and market fluctuations.
Gold Price Increase in Indonesia in 2024
The gold price chart above shows the movement of gold prices in the Treasury app in Rupiah per gram over the past year, with the latest data as of November 6, 2024. Over the course of this year, the gold price chart has seen a significant increase of 44.27%, or approximately Rp 448,000 per gram.
During this period, the lowest gold price was Rp 1,012,225 per gram, and the highest was Rp 1,460,401 per gram. The gold price chart above shows considerable volatility. At the beginning of the year, specifically around March to April, there was a sharp increase.
Then, from May to August, there was a consolidation phase where prices moved relatively flat. This situation reflects the market’s reaction, which is still waiting for economic certainty or new policies. Entering the final quarter, gold prices again experienced a significant increase.
Overall, the gold price chart above illustrates a significant upward trend in gold prices over the past year, as it has become a popular investment choice and is considered safe and stable.
Read Also: Revealing 3 Facts About Annual Gold Price Increases – Treasury
Factors Affecting the Rise in Gold Prices in 2024
1. Global Economic Uncertainty
Global economic uncertainty is one of the main factors affecting gold prices. When economic conditions are unstable, whether due to recession, financial crisis, or political tension, investors tend to seek instruments that can protect the value of their assets.
Gold, as a safe-haven asset, remains the top choice. In 2024, uncertainty surrounding high inflation in many countries and the potential for recession in some major economies could drive demand for gold, significantly impacting the gold price chart.
Additionally, escalating geopolitical tensions, such as regional conflicts or tensions between major nations, can further worsen market sentiment. When investors feel concerned about the future of the economy, they are more likely to purchase gold, which is perceived as a safer asset.
2. Central Bank Monetary Policy
Monetary policy implemented by central banks, particularly the US Federal Reserve (The Fed), has a direct impact on gold price charts. If central banks continue to raise interest rates to control inflation, the US dollar will strengthen. This situation could cause gold prices to fall.
However, if monetary policy tends to be more dovish or supportive of economic growth, such as by lowering interest rates or maintaining low interest rates, then gold prices will tend to rise.
In 2024, many analysts predict that the Fed and other central banks may be more cautious about raising interest rates further, due to the ongoing impact of inflation and the economic crisis. If central banks choose to ease monetary policy, the appeal of gold will increase.
3. Rise in Global Inflation
High inflation is one of the main drivers of the rise in gold prices, as gold is often seen as a hedge against inflation. When global inflation rates are high, the value of fiat currencies (such as the dollar, euro, or rupiah) declines, and purchasing power decreases.
In response to this situation, many investors will turn to gold as a more stable store of value. Increased demand for gold will drive up its price, resulting in a positive trend in the gold price chart.
In 2024, persistently high inflation in major economies like the United States, Europe, and some developing countries could exacerbate economic uncertainty. If inflation worsens, gold’s appeal will grow stronger, as it has long been recognized as an instrument capable of preserving investors’ purchasing power during periods of high inflation.
4. Gold Demand from Major Countries
In addition to macroeconomic factors, gold demand from major countries can also influence gold price charts. In 2024, major countries such as China, India, and Russia are expected to continue increasing their gold reserves as a measure to diversify their foreign exchange reserves.
These countries often purchase large quantities of gold to reduce their dependence on the US dollar and strengthen their foreign exchange reserves. Specifically, China and India have become the world’s largest consumers of gold, both in the form of jewelry and direct purchases by central banks.
If demand from these countries remains high, gold prices could surge, which will be clearly visible in the gold price chart. Other countries striving to strengthen their gold reserves will also play a role in supporting gold prices in 2024.
5. Fluctuations in the US Dollar Exchange Rate
The US dollar exchange rate is another factor that greatly influences the rise in gold prices. When the US dollar strengthens, gold prices tend to fall because gold is priced in dollars, making it more expensive for buyers using other currencies.
Conversely, when the US dollar weakens, gold prices typically rise because gold becomes more affordable for international buyers. This situation will be reflected in higher movements in the gold price chart.
In 2024, when the US dollar experiences a decline in value due to more accommodative monetary policy or a weakening US economy, gold will become more attractive to international investors. Fluctuations in the US dollar’s value will continue to be a key determinant in gold price movements.
The rise in gold prices in 2024 offers great opportunities for investors to make profits. Factors such as central bank monetary policy, geopolitical tensions, global inflation, and demand from major countries play a significant role in driving gold prices.
In Indonesia, this momentum presents an opportunity for local investors to optimize their assets before gold prices reach their peak. The gold price chart showing a stable upward trend sends a positive signal to those looking to invest in gold.
For those of you who are new to gold investing, now is the perfect time! Don’t forget to monitor gold price charts and conduct market research to maximize the potential profits offered by rising gold prices.
Start your gold investment early with Treasury to prepare for a better financial future!
