Gold on path to highest annual rise since 1979

ISTANBUL

Gold gained over 40% per ounce this year, while it’s poised to reach the highest annual rise since 1979, led by geopolitical risk, concerns over the global economy, central banks’ gold demand, and the Fed’s rate cut cycle.

Gold started the year at $2,623 per ounce, following a period of heavy buying.

Gold rose 6.67% month-on-month in January, 2.17% in February, 9.26% in March, 5.26% in April, 0.03% in May, and 0.41% in June.

The ounce price of gold fell 0.39% in July, but it recovered with a 4.8% surge in August, then rose 8.54% in September.

Gold reached a record high of $3,791 per ounce, gaining around 43% since the start of the year. Since 1979, the price of gold has risen 126.5%.

Hamad Hussain, a climate and commodities economist at Capital Economics, told Anadolu that rising estimates for rate cuts in the US, concerns over the Fed’s independence, and concerns about debt sustainability pushed gold prices to record highs.

“The upward trend in gold prices seems likely to continue as several tailwinds like central bank purchases and strong investor demand in China remain key drivers of the rally. As a result, gold prices will probably reach $4,000 per ounce over the next year,” he said.