Gold Price Forecast 2024: Insights from MKS PAMP Analysts

As we enter the second half of 2024, gold may be much undervalued based on the most recent July 3, 2024 research from eminent precious metal analysis MKS PAMP. Given historical patterns and consistent seasonal signs, this could be a good opportunity for investors to give gold some thought since precious metals prices are expected to show appreciable rise in the next months.

Understanding the Seasonal Trends in Gold and Silver Prices

Seasonal trends have long been used as a supplementary tool for understanding market behaviour. While these trends should not be the sole basis for any trade decisions, they often provide valuable context for price movements.

MKS PAMP analysts highlight that the dynamics of gold and silver prices in the first half of 2024 closely followed historical seasonal norms, with prices rising in alignment with expected patterns in the latter half of the year.

First Half of 2024 Performance: Gold and Silver Exceed Expectations

In the first half of 2024, both gold and silver demonstrated stronger-than-expected performance:

Gold: The price of gold increased by an average of 2% per month, significantly surpassing the historical forecast of 0.5% growth per month.

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Silver: Silver prices showed an even more impressive average monthly increase of 3.6%, well above the historical average increase of 0.2% per month.

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This robust performance in the first half sets a positive precedent for the second half of the year, where further gains are anticipated.

Key Drivers Behind Precious Metals Growth

MKS PAMP analysts attribute the strong performance of precious metals to several key factors:

1. Central Banks’ Increased Gold Reserves

One of the primary drivers is the significant increase in gold reserves by central banks in Asian countries

This growing demand from central banks has bolstered gold prices and is expected to continue supporting them throughout the year.

2. Inflation, Geopolitical Risks, and De-Dollarisation Concerns

Heightened concerns over inflation, ongoing geopolitical risks, and the potential for de-dollarisation have also played a crucial role in strengthening the US dollar. These anxieties have led to rate hikes by the Federal Reserve, which in turn has contributed to the upward momentum in gold prices.

The Gold Price Forecast for the Second Half of 2024

The possibilities for gold and silver in the later half of 2024 excite MKS PAMP experts. According to historical data, the second half of the year for gold and silver has seen 1.4% and 2.2% cumulative increase accordingly since 2010. Should these patterns hold true, the price of precious metals may rise similarly or perhaps more significantly as the year goes on.

Short-Term Outlook: A Strong Summer Performance Expected

Looking ahead to the short-term outlook for the summer, MKS PAMP anticipates that all the metals discussed in their report will perform strongly. The seasonal factors, combined with the aforementioned growth drivers, suggest that the market is primed for a solid performance in the coming months.

Conclusion: What This Means for Investors

As we approach the second half of 2024, the data from MKS PAMP provide investors with a compelling case for attentively observing the precious metal market especially looking into the long term.

Now could be the ideal time to consider adding gold and silver assets to your portfolio

This can be put down to their historical performance of considerable growth in the second part of the year and current geopolitical and economic environment supporting this trend.

Using knowledge of current market drivers coupled with past trends can help investors choose better as they negotiate the precious metal market in the second half of 2024.