Making history in 2024 with 40 records: The journey of gold

Despite the economic uncertainties gripping the entire world, gold prices have provided gains for investors this year as well. Experts state that gold is on track to deliver its best performance in the last 10 years. According to the World Gold Council's report, gold prices broke records 30 times throughout 2024. Furthermore, as of November, the dollar-denominated price of gold showed an increase of over 28 percent compared to the same period in 2023. Experts predict that gold, referred to as a 'safe haven,' will continue to gain value in 2025.

IT BECAME ONE OF THE BEST-PERFORMING ASSETS OF THE YEAR

According to the World Gold Council's 'Gold Outlook 2025 Report,' the dollar-denominated price of gold recorded an increase of more than 28 percent as of November 2024 compared to the same period in 2023. This rise indicates that 2024 is on track to be the year with the best annual performance of the last 10 years.

BROKE RECORDS 40 TIMES

While gold prices broke records 40 times on an annual basis throughout 2024, total gold demand exceeded 100 billion dollars for the first time in the third quarter of the year.

Investment demand, geopolitical risks, and fluctuations in financial markets supported gold prices throughout the year. Additionally, the continued addition of gold to their reserves by central banks, and their accelerated purchases particularly in October, were significant factors in the rise of gold prices.

THE UNSTOPPABLE RISE OF GOLD

In Turkey, gold remains at the top as the safest investment vehicle. Gold, whose rise cannot be stopped, has become the most widely held investment vehicle, especially as 'under-the-mattress' savings. On January 1, the price of gram gold was at the 1,937 lira level, while the price of quarter gold was at 3,427 lira.

WHEN DID GOLD FALL? WHEN DID IT START TO RISE?

Showing a steady rise since the beginning of the year, gold experienced its biggest drop following the US elections. With the impact of Trump being elected president, sharp declines were seen in ounce prices. Due to the environment of uncertainty and the strengthening of the US dollar, ounce gold fell to 2,559 dollars on November 14, the lowest level in the previous 8 weeks. Ounce gold prices, which were on the rise before the election, had hit a record high of 2,790 dollars on October 30.

While ounce gold was trading at 2,708 dollars on November 6, gram gold was finding buyers at 2,979 TL, quarter gold at 4,871 TL, and Republic gold at 19,426.52 TL. However, on November 14, quarter gold traded at 4,614 TL and Republic gold at 18,402 TL. Gram gold fell to 2,882 TL.

On December 1, expectations of interest rate cuts by central banks and developments in the Middle East created uncertainty in gold prices. Gram gold continued to trade at the 2,961 TL level, and quarter gold at 4,991 TL.

Analysts: The decline is temporary, a rise is expected in the long term

According to analysts, gold prices are expected to maintain their upward trend in the long term as central banks continue to cut interest rates. Factors such as market geopolitical risks, the slowdown in the Chinese and European economies, rising global debt, and gold purchases by central banks play a decisive role in prices. Considering this situation, analysts believe the long-term outlook for gold will remain positive. Gold prices, which are projected to follow a horizontal course until the end of the year, are expected to start rising again with the beginning of 2025.

THE RATE OF THOSE INVESTING IN GOLD IS RISING

While the rate of those investing in gold has doubled in the last 15 months, according to research by State Street, one of the major US banks, the proportion of those with over 250,000 dollars in investable assets who state they have gold in their portfolio rose to 38 percent this year. This rate remained at the 20 percent level in the last survey conducted 15 months ago. Thus, the orientation toward gold among the wealthy segment has almost doubled.

According to the research, 56 percent of investors in this group stated that they would increase their gold investments in the coming period. The millennial generation, covering those born between 1981 and 1996, was the generation with the most intense interest in the precious metal. According to the research, while the rate of millennials with gold investments was 61 percent, this rate remained at 35 percent for the second-ranked Generation X.