Table of Contents:
The gold market in 2024: trends and forecasts
In the first months of 2024, the gold market showed signs of growth, with a significant increase in value against the US dollar. In October, the price of gold reached 2,790 dollars per troy ounce, marking an all-time high. However, after this high, the price retraced, reaching around 2,550 dollars. Forecasts indicate a possible recovery towards 2,750 dollars by the end of the year, despite global economic uncertainties
.
Factors affecting the price of gold
The decline in the price of gold has been attributed to the perception that the new President of the United States could reduce government debt. However, many experts do not share this view, believing that fiscal policies will continue to generate deficits, similar to those observed during the Trump administration. In addition, the money supply and the national debt have increased steadily, regardless of the party in power. This scenario could favor an inflationary environment, further supporting the price
of gold.
Opportunities for investors in the mining sector
The mining sector, especially the gold sector, is an attractive option for investors. With the expected increase in the price of gold, which could exceed 3,000 dollars per troy ounce by 2025, mining stocks could benefit from significant gains. Mining companies have shown strong cash flows and high profit margins, despite inflationary challenges. In addition, the reduction in indebtedness in the mining sector, unlike other sectors, makes these companies more attractive
to investors.
The future of the dollar and the impact on investments
Another crucial factor is the performance of the US dollar. If the dollar peaked in 2024, gold mining companies could become particularly attractive to European investors. With an expected 20% increase in the price of gold, mining stocks could record a 40% gain. In addition, a weaker dollar could further increase returns for European investors, creating significant earning opportunities
.
