Gold Bar Hits $1M Milestone, Rare Price Target Revealed

Historical Moment: A Gold Bar Surpasses 1 Million USD, With Rare Price Targets Exposed!

For centuries, gold has held the reputation as the go-to asset for investors seeking stability in uncertain timesSeen as a reliable store of value, this precious metal not only provides a safety net during market volatility but is also regarded as a trustworthy hedge against inflationThe intrinsic value of gold has cemented its status as a key element in diverse investment portfolios, helping to shield investors from the fluctuations of stocks, bonds, and other asset classes.

However, the allure of gold has metamorphosed beyond its traditional role in recent yearsThe astonishing bull run in gold prices over the past year has captured the attention of a growing number of traders and investors alike.

A confluence of economic factors has led to an explosive rise in gold prices throughout 2024, attracting seasoned investors as well as newcomers eager to make their mark

The persistent surge in gold prices has highlighted its position as a high-return asset, prompting many to reassess its potential for preserving and increasing wealth.

This begs the question: How much have gold prices risen since the beginning of the year? Will the upward trajectory continue? What avenues exist for potential investors to capitalize on opportunities in gold? Let us take a closer look at the significant rise in gold prices in 2024 and explore possible future trends.

How much has gold skyrocketed this year?

On August 16 of this year, spot gold prices surpassed the remarkable threshold of $2,500, causing a 400-ounce gold bar to achieve the unprecedented price of 1 million USD for the first time ever!

Fast forward two months to October 18, when spot gold prices exceeded $2,700. Less than two weeks later, during an Asian trading session on October 30, spot gold reached new historical heights, nearing $2,800, closing at $2,782.12. At this juncture, the price for a 400-ounce gold bar surged beyond 1.12 million USD.

This year has indeed been extraordinary for gold, as prices have climbed steadily and significantly

• China Discovers World's Largest Gold Mine
• SERES & Huawei: A Collaboration Story
• Aliyun Partners with NVIDIA; Stock Targets HKD 100
• Initiating a Price War in Rates
• BYD Crowned Leader of the New Energy Sector

On January 1, the price of gold was $2,063.73 per ounceAs of today, October 28, 2024, the price has increased to $2,743.31 per ounceThis reflects an astounding rise of $679.58 per ounce, translating into an approximate increase of 33% within just ten months.

This surge is striking, as historical records show that gold prices have never before escalated so rapidlyIn August, gold prices peaked at $2,525 per ounce, but continued to climb, surging past $2,750 by October 23. Such a leap of over $200 in a short span of merely two months underscores the exceptional performance of gold in 2024, consistently exceeding market expectations.

The eye-catching performance of gold this year is noteworthy as it is typically viewed as a long-term, stable asset rather than one known for quick short-term gainsHistorically, investors have turned to gold to maintain their value amid economic unpredictability or inflationary pressures.

Even though a stable appreciation in gold prices is anticipated, a 33% increase within just ten months is indeed an unusual occurrence for an asset class known for its gradually steady growth

The recent price surge reveals an uptick in demand for gold alongside unique market circumstances—geopolitical tensions, inflationary pressures, and shifts in policies by central banks globally have all played a role in enhancing gold's short-term value.

Will gold prices continue to rise?

Despite its impressive performance, many analysts believe that gold prices have yet to reach their pinnacleA variety of factors may propel prices even higher in the coming months.

For one, global demand for gold remains robust, especially in emerging economiesAs more and more investors look to gold as a form of investment protection, the expansion of interest could further elevate gold prices.

Additionally, supply shortages are impacting the price of goldThe discovery of new gold mines has slowed, with many existing reserves located in hard-to-extract areas, leading to higher and more complex extraction costs

In an environment where demand is surging but supply remains limited, these dynamics could create conditions conducive to further price increases.

Moreover, the role of gold across various industries is expanding, adding another layer to its demandAs technology evolves, the demand for gold in electronics, healthcare, and renewable energy applications continues to growThis industrial demand is expected to continue its expansion, potentially driving further interest in gold.

Central banks around the world are also persistently increasing their gold reservesThis strategy aims to mitigate currency fluctuations and economic uncertainty, providing a solid foundation for potential future price hikes.

Some experts and Wall Street investment banks predict that gold may reach new milestones by the end of the year, with some forecasts even suggesting prices could approach or break through the $3,000 per ounce mark.

In the next three months, could prices breach $3,000?

The outlook for gold prices is optimistic, with market expectations suggesting that in the next three months, gold prices may surpass $2,800 per ounce.

Standard Chartered analyst Suki Cooper wrote a report anticipating that by the fourth quarter of this year, gold prices would reach $2,800 per ounce, with average prices potentially rising to $2,900 in the first quarter of the following year

Similarly, Vivek Dhar, an analyst from the Commonwealth Bank of Australia, believes that if the dollar continues to weaken, average gold prices this fourth quarter will be around $2,800 per ounce.

Additionally, Citi Research has revised its three-month gold price forecast from $2,700 per ounce to $2,800 per ounce; for the next six to twelve months, the outlook is even higher at $3,000.

Peter AGrant, a strategist at precious metals dealer Zaner Metals, predicts that should tensions in the Middle East escalate significantly, gold prices may hit $3,000 per ounce before the year-wind downHowever, based on current conditions, the likelihood of reaching $3,000 in the first quarter of next year seems relatively high.

Nick Twidale, chief market analyst at ATFX, highlights that in the long run, gold prices are predominantly driven by inflation concerns in the U.Sand China, as well as geopolitical risks

He does not foresee these factors diminishing anytime soon“This indicates that gold will rise higher, as we may find ourselves grappling with inflation againIn a chaotic landscape, ‘geopolitical conflicts’ exacerbate instability, and uncertainty prompts investors to withdraw funds from the stock market—historically a solid investment over the past four years—leading them to seek refuge elsewhere,” he elaborates.

“Which safe haven asset will these investors choose? Not crude oilNot corn eitherThere’s no ‘Corn King’ nor an ‘Oil King.’ If you wish to hedge against inflation risks, you will turn to gold due to both economic and political pressures.”

Is it time to invest in gold?

Traditionally viewed as a reliable haven asset, gold stood out during the severe pandemic of 2020, experiencing an increase of over 40%. Over the last three years, gold has yielded returns exceeding 40%, with close to 60% gains over the past five years and nearly a staggering 500% over the past twenty years!

While this performance trails the S&P 500 Index, it significantly outperforms the low to mid-single-digit returns of other non-equity investments such as bonds and high-yield savings accounts.

According to JPMorgan, the total amount of gold held by investors amounts to 3.3 trillion USD, which roughly constitutes 1.4% of the value of all global investments.

Besides purchasing physical gold or gold futures, investors can also trade gold contracts for difference (CFDs) and gold exchange-traded funds (ETFs).

When it comes to investing in gold, three key concepts emerge: long-term, diversification, and flexibility.

(1) Long-term

The first key word, “long-term”, emphasizes the fundamental truth that wealth cannot be rapidly created in the short term

This understanding helps investors avoid succumbing to the temptation of making hurried decisions that could expose them to excessive riskFurthermore, as gold and related investment products are subject to constant price fluctuations, the strategy of spreading investments over a prolonged period is crucial to mitigate the risk of “deploying all funds at a market peak”.

(2) Diversification

The second keyword, “diversification”, underscores the importance of adhering to both time diversification—buying at different moments—and commodity diversification—positioning across various investment vehiclesThe longer the investment period stretches, the greater the possibility of unforeseen “black swan” events happening, such as a country's bankruptcy, severe inflation, or catastrophic natural disastersWhile none of these potential market-disrupting events are welcomed, they can occur sooner or later.

Recognizing these risks ahead of time and preparing proactive strategies to either minimize or avoid their impacts is vital

Investing in gold serves as a form of “insurance,” providing a buffer against potential downturns in stock or other asset marketsThis notion of insurance underpins the approach to gold investing and is further enhanced through a diverse range of investments.

(3) Flexibility

The third keyword, “flexibility”, is primarily suited for risk-tolerant tradersThey can profit from online trading in gold through CFDs, ETFs, or stocks of gold-related companiesNotably, transactions typically do not involve the physical handling of gold bars or coins, as they are settled in cash.

Online trading in gold

During online trading, it is not necessary to strictly adhere to the traditional "buy low, sell high" mantra, as one has the ability to go long or short on gold prices—providing opportunities in both rising and falling marketsNo matter which position one assumes, the ultimate goal in trading gold is to forecast the market's direction

The further the market trends in the predicted direction, the greater the profit; conversely, losses will compound similarly.

CFD trading is among the popular choices for trading gold and its assetsLeading online trading broker ATFX, regulated by top-tier institutions like the UK's FCA and Australia's ASIC, offers a wide array of trading markets, including gold CFDs.

CFDs represent an online trading tool that enables investors to speculate on price movements without possessing the underlying asset itselfThe majority of returns stem from price fluctuations rather than ownership of the securities.

Some underlying assets may include stocks, indices, commodities, precious metals, or currenciesThe appeal of CFD trading derives from the leverage it affords; buyers can initiate trades with relatively lower capital expenditure.

For instance, if the gold trading price stands at $1,857.15/1,857.55, and you decide to buy two CFD units, predicting an upward trend, the margin rate for gold is 5% (or 1:20 leverage). Consequently, you would only need to deposit 5% of the total position value as margin.

Thus, in this case, your margin would amount to $185.755 (5% x 2 x 1,857.55).

Remember, if the price moves unfavorably, you might lose more than your $185.755 margin.

Scenario A: Profitable Trade

Suppose your prediction proves accurate, and the price rises to $1,925.20/1,925.60 within hours

You decide to exit your long position by selling at $1,925.20 (the current ask price). In this instance, the price would have beneficially shifted by $67.65 ($1,925.20 - $1,857.55).

Your profit would then be 2 x $67.65 = $135.3.

Scenario B: Losing Trade

Unfortunately, your expectation fails to materialize, and the gold price drops to $1,817.15/1,817.55 within an hourSensing the possibility of further decline, you choose to exit your trade at $1,817.15 (the current ask price).

The adverse movement in price would be $40 ($1,857.55 - $1,817.15).

Your loss, in this case, amounts to 2 x -$40 = –$80.

Why Choose ATFX for Gold Trading?

For many years, ATFX has gained recognition as a premier choice for global precious metal trading, known particularly for its user-friendly platform and robust technical capabilitiesATFX demonstrated remarkable market performance in Finance Magnates’ Q2 2024 report, with trading volumes on its MT4/MT5 platforms soaring to an astounding $765.1 billion, placing it fourth in global trading volume rankings

Compared to the previous quarter, ATFX's trading volumes surged by 22.45%, and they achieved a remarkable year-on-year increase of 43.75%, illustrating astonishing growth potential.

From a product trend perspective, precious metals remained a market favorite in Q2 2024, as reflected in the dataTrading volume in the precious metals category increased by 26.2% compared to Q1 2024 and exhibited a staggering 79.2% gain year-on-year from Q2 2023.

Additionally, trading volumes in indices rose by 99.38% since Q1 2024, and 14.58% year-on-year, while stock trading volumes jumped 457.82% from Q1 2024 and 167.89% year-on-yearEnergy trading volume intensified by 23.03% from the first quarter of 2024.

The introduction of ATFX’s “RMB/Gold” product offers clients a composite, vertical, and tiered selectionThis diverse array of offerings enables clients to swiftly discover the desired investment configurations

Furthermore, ATFX has established a comprehensive investor education system to equip clients with market insightEnhanced analysis tools and industry-leading reports have garnered extensive acclaim from media, institutions, and investors worldwide.

To improve traders’ experiences, ATFX has announced the migration of all MT trading servers to Equinix’s data center in Hong Kong and the existing OneZero Equinix data center in LondonThis step fortifies the global trading infrastructure's stabilityThe server migration project promises ultra-low latency solutions for users in regions such as Asia, the UK, Latin America, South Africa, and Australia, significantly accelerating trade matching times to provide clients with faster, more reliable trading experiencesEquinix’s leading position in hosting and interconnection services guarantees exceptional performance support for ATFX through its low-latency networks, enhancing the tech and service experience of the group.

Joe Li of ATFX noted that the comprehensive enhancement and optimization of data centers and network infrastructure has significantly bolstered trading efficiency and stability, allowing network connection speeds to increase by 60% to 150%. ATFX has expanded its MT4/MT5 servers to state-of-the-art platforms and is offering customized products and solutions based on regional needs, such as ATFX CopyTrade in Southeast Asia and AT Premier in the Middle East, to optimize the global user experience

This strategic positioning has not only bolstered ATFX's market competitiveness but also solidified its leading role in the fintech arena, laying a solid groundwork for future growth.

Jeffrey Siu, COO of ATFX, stated, “What sets ATFX apart is our commitment to forging solid and long-term relationships with clients through cutting-edge trading technology, while providing tailored and high-quality support services to meet their diverse needs.”

Recently, ATFX has achieved notable accomplishments, with substantial growth in trading volumes across various products, particularly precious metals and stocks, demonstrating its technical prowess, service quality, and market acumen.

In addition, ATFX has been actively enhancing compliance measures, recently receiving the Hong Kong SFC Type 3 license, making it one of the few brokers accredited by the world’s eight top-tier financial regulatory bodies

The company has attracted numerous top industry talents, facilitating the global strategic layoutATFX continues to engage in international finance summits to discuss market opportunities with global investors, garnering widespread recognition.

In summary

Gold prices surged significantly in 2024, indicating an impressive 33% increase, reaffirming its role as a safe-haven asset and emphatically demonstrating strong short-term momentumWhile traditionally regarded as a long-term investment, this year’s rapid price escalation highlights the unique market conditions propelling this upward climb.

Looking ahead, robust demand, supply challenges, and expanding industrial applications suggest that the upward trajectory of gold may persistFor investors contemplating a foray into the gold market, now might just be the ideal time to make a move, as delaying could mean facing even higher prices in the near future.