Global Gold Prices Soar, Hitting New Record High in July 2024

Based on World Bank data, the trend of 99.5% fine gold London Fix Afternoon Price has been steadily rising since the beginning of the year, reaching US$2,398 per troy ounce in July 2024.

This price represents a 22.9% increase year-on-year (YoY) and sets a new record high in World Bank records.

The World Bank assesses that gold prices often rise in line with increasing investor concerns about the global situation.

"Gold prices are often seen as a barometer of global uncertainty," stated the World Bank in its October 2023 Commodity Market Outlook report.

"Past geopolitical conflicts and uncertainties have often been accompanied by rising gold prices. If a wider conflict were to occur in the Middle East, gold prices would likely rise further from already high levels, as investors shift to safer assets (safe-haven)," it continued.

According to the World Gold Council (WGC), gold prices have strengthened this year due to increased investor demand, both from central banks and the over-the-counter (OTC) market.

"Record-breaking gold prices have been a key focus due to strong central bank demand and consistent price support from the OTC market throughout the year," said Louise Street, senior market analyst at the WGC, in a press release on Tuesday, July 30, 2024.

"In the OTC market, there is continued interest in gold from institutional and high-net-worth investors, including family offices, as they turn to gold for portfolio diversification," she continued.