The gold market is poised to make history in 2024. It enters the New Year within striking distance of new all-time highs.
How high will gold go? Much depends on how low interest rates and the U.S. dollar go.
The Federal Reserve ended its rate hiking campaign last fall. It is expected to pivot toward monetary easing later this year.
That should work to the benefit of gold and other hard assets.
Of course, there remains much uncertainty surrounding the economy, inflation, and interest rates. If persistent inflation pressures force central bankers to keep rates elevated, then stock and bond markets could tank – possibly taking down precious metals markets with them at least temporarily.
Market volatility could also ramp up later in the year around the presidential election.
With partisan prosecutors and judges threatening to jail the leading rival to incumbent President Joe Biden, and some state election officials moving to remove former President Donald Trump from the ballot, questions about the legitimacy of the election are already being raised.
Some pundits are warning that something akin to a civil war could break out if the declared winner of the election is perceived to have stolen it.
Regardless of the outcome, larger questions loom about the ability of the political system to deal with the mounting debt crisis. Neither Republicans nor Democrats in positions of power have any realistic plans to get spending under control, balance the budget, or pay down the debt.
It will cost the government more than $1 trillion in 2024 just to make interest payments on the debt.
As the national debt crosses the $34-trillion mark, Social Security and Medicare are rapidly heading toward insolvency and represent trillions more in unfunded liabilities.
Taxes can never be raised high enough to cover these massive obligations. And the political reality is that spending will never be cut and promised benefits will never be taken away either.
An inflection point is nearing. The U.S. government’s credit rating was twice downgraded by ratings agencies in 2023.
Under our fiat monetary system, however, the Treasury Department can always “borrow” more dollars into existence by dumping bonds onto the balance sheet of the Federal Reserve in exchange for cash created out of nothing.
Inflating the currency supply is the way the government will manage to keep paying its bills.
The way to preserve purchasing power amid rampant currency depreciation is to hold physical gold and silver.
Unlike fiat Federal Reserve notes, precious metals are scarce. In fact, they face widening supply deficits in 2024.
Major gold, silver, copper, platinum, and palladium mines are struggling with rising operations costs and degrading reserves.
As mining output hits a ceiling, demand for metals among industries, consumers, and investors continues to grow.
Investment demand is a wild card for gold and silver markets. It surged following the COVID-19 outbreak but softened in 2023 as higher interest rates lured savers into money market funds and rising equity markets diminished the perceived safe-haven appeal of bullion.
That could change in 2024. The prospect of Fed rate cuts, election uncertainty, and a gathering debt storm makes holding physical precious metals mandatory for those who seek to protect their wealth.
Money Metals Exchange and its staff do not act as personal investment advisors for any specific individual. Nor do we advocate the purchase or sale of any regulated security listed on any exchange for any specific individual. Readers and customers should be aware that, although our track record is excellent, investment markets have inherent risks and there can be no guarantee of future profits. Likewise, our past performance does not assure the same future. You are responsible for your investment decisions, and they should be made in consultation with your own advisors. By purchasing through Money Metals, you understand our company not responsible for any losses caused by your investment decisions, nor do we have any claim to any market gains you may enjoy. This Website is provided “as is,” and Money Metals disclaims all warranties (express or implied) and any and all responsibility or liability for the accuracy, legality, reliability, or availability of any content on the Website.
Recommended Content
Editors’ Picks

AUD/USD holds recovery gains above 0.6000 despite US-Sino trade war
AUD/USD hold the rebound above 0.6000 in the Asian session on Tuesday, helped by a recovery in risk sentiment on China's support measures to stabilize markets. A renewed US Dollar selling also aids the Aussie's upswing but further upside appears elusive amid escalating US-China trade war.

USD/JPY stalls its recovery from multi-month low; reverts to 147.50
USD/JPY is paring gains to return toward 147.50 in Tuesday's Asian session. A recovery in risk sentiment along with receding bets that the BoJ would raise the policy rate at a faster pace underpin the pair. However, resurgent US Dollar supply acts as a headwind to the USD/JPY turnaround.

Gold price retakes $3,000 on recovery from monthly lows
Gold price rebounds from monthly lows to test $3,000 in the Asian session on Tuesday, snapping a three-day losing streak. Concerns that a trade war will hit the US economy and trigger a recession combind with mounting bets for more aggressive Fed rate cuts provide a fresh lift to the yieldless Gold.

Ethereum risks a decline to $1,000 amid selling pressure from DeFi liquidations
Ethereum suffered a more than 27% crash within the past 48 hours, briefly dropping to a two-year low of $1,410 before recovering the $1,500 level on Monday. The decline, per Coinglass data, sparked $257.87 million in liquidations across ETH's derivatives market during the period.

Strategic implications of “Liberation Day”
Liberation Day in the United States came with extremely protectionist and inward-looking tariff policy aimed at just about all U.S. trading partners. In this report, we outline some of the more strategic implications of Liberation Day and developments we will be paying close attention to going forward.

The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.