The World Gold Council has released its Gold Mid-Year Outlook 2024, revealing gold has risen by 12% year-to-date (15% in AUD), surpassing most major asset classes.
As such, the council says gold remains one of the best performing assets so far this year, ranked second behind US stocks which is up nearly 16% year-to-date.
Throughout the year, the precious metal has made several headlines as it has surpassed every record high.
As this news service previously reported, the price of gold kicked off the new financial year at $3,487.18 per ounce.
Despite record-breaking prices and remaining a top performing asset, the World Gold Council reports the global economy and financial markets are in a transition period.
The council says bond yields have moved generally sideways as western central banks keep policy rates on hold, yet pressure is mounting on policymakers as they balance lower, but stubborn, inflation and signs of cooling labour markets.
“This is exemplified by the sooner-than-expected rate cut by the European Central Bank, while the Bank of England and US Fed have so far stayed put,” World Gold Council says.
Global Head of Research Juan Carlos Artigas says the market used to focus on interest rates and the US dollar to inform the perception of gold.
“Through that lens, developments during the past six months should have significantly dented gold’s performance — and yet we’ve had record highs and strong performance throughout Q2,” he says.
“Like the global economy, gold appears to be waiting for a catalyst. This may come in the form of western investment flows as interest rates fall or sik metrics increase.”
Write to Aaliyah Rogan at Mining.com.au
Images: The World Gold Council