Gold and silver prices are set for a strong finish to 2024, with gold on track to deliver its best annual performance in over a decade. On the other hand, silver is poised for its best return since 2020.
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Gold has surged more than 26% year-to-date, driven by geopolitical tensions, central bank policies, and expectations of lower interest rates.
Meanwhile, silver has seen a 34.4% increase this year.
Gold and silver prices on last trading day of 2024
Spot gold rose 0.1% to $2,608.09 per ounce on the last trading day of the year (December 31), while US gold futures gained 0.1%, to $2,620.60 per ounce
In India, the price of 24-carat gold stands at ₹7,818.3 per gram, up by ₹180, while 22-carat gold is priced at ₹7,168.3 per gram, reflecting a ₹170 rise.
The current price of silver in India is ₹95,400 per kg.
Insights on gold, silver performance in 2024
Tim Waterer, Chief Market Analyst at KCM Trade, attributes much of gold’s performance to the expectation of a lower interest rate environment.
He stated, “Gold enjoyed a stellar year in 2024, driven by central bank buying, policy easing, and geopolitical tensions, which helped propel prices higher,” according to a Reuters report.
Mayank Bhatnagar, Co-founder and COO of FinEdge, noted, “The performance of gold and silver is largely driven by the geopolitical uncertainties and inflation concerns that shaped the global landscape over the past year.”
Investment outlook for 2025
Looking ahead, the outlook for both gold and silver remains positive.
Analysts predict that these metals will continue to attract investors as safe-haven assets, with central bank policies and inflation concerns continuing to drive demand.
Gold’s price is expected to be influenced by US interest rate trends, while geopolitical tensions could provide additional support.
Kyle Rodda, financial market analyst at Capital.com, said, “The fundamentals for gold remain constructive. Going into 2025, I expect the trend to remain bullish, and gold could challenge record highs once again.”
However, experts advise caution due to the inherent volatility of commodity markets.
Rahul Kalantri, VP of Commodities at Mehta Equities, said, “Gold and silver are currently seeing strong gains, but any shifts in economic data, particularly around US interest rates or inflation, could bring about corrections. Investors should be aware of these risks and be prepared for potential price fluctuations.”
Bhatnagar of FinEdge emphasised that while commodities have outperformed other asset classes this year, their cyclical nature should not be overlooked.
“While gold and silver have been standout performers, this asset class can experience extended periods of underperformance. It’s important for investors to manage expectations and not base decisions solely on past performance,” he cautioned.
He further stressed the importance of diversification in investment strategies.
“Asset allocation remains crucial, and investors should focus on a balanced strategy that aligns with their financial goals, risk tolerance, and time horizon,” he advised.