Insights

Gold performed exceptionally well in 2024, outperforming all major asset classes. Gold rose 25.5%, which was likely driven by gold’s role as an effective hedge against heightened geopolitical uncertainty and market volatility.

Joe Cavatoni and John Reade of the World Gold Council review gold's impressive 2024 performance, with a 28% gain through November—the best in over a decade.

In this episode of Unearthed, hosts John Reade and Joe Cavatoni discuss the latest gold market trends, reflecting on the U.S. election outcome, monetary policy, and China’s recent economic developments.

Delaying our Gold Market Commentary until after the possibly volatility-inducing US election, we instead take stock of some interesting statistics regarding October's and the year-to-date stellar run-up in gold prices.

In Q2’24, dare it be written, All-In Sustaining Costs (AISC) rose again, creeping up by 1% q/q, or a more substantial 6% y/y to US$1,388/oz.

China has recently announced aggressive stimuli to shore up consumer confidence and support growth. Based on our models we believe the potential improvement in GDP will benefit gold demand in China. However, gold investment appetite may face competition from other assets including equities and property as the economy recovers.

In this special episode of "Unearthed", John Reade and Joe Cavatoni from the World Gold Council discuss the 50 basis point interest rate cut by the U.S. Federal Reserve and its impact on the gold market.

Over the past five years, gold and bitcoin have provided strong returns. There is no question that bitcoin has offered significant upside (and sometimes downside) - but at what cost as compared to gold?

In July, China’s wholesale gold demand remained weak and the local gold price premium trended down further. However, gold ETFs saw their eighth consecutive monthly inflows, pushing the total assets under management and holdings to record highs. And China’s official gold holdings remained unchanged.

Gold rose to a new all-time high in mid-May before pulling back, likely on profit taking, to close the month at US$2,343/oz. This delivered a 1% monthly increase, adding to gains in March (9%) and April (5%).

International and domestic gold prices moderated from the April peaks but ended the month with gains following the notable price rise of March. After a weak March and April, there was resurgence in gold demand around the Akshaya Tritiya festival. Domestic gold prices continue to trade at a discount in relation to the international prices, but the discounts have narrowed from a month ago. Meanwhile, the RBI added to its gold reserves in April and gold ETFs witnessed outflows for the first time in 12 months.

In Q4’23 gold miners’ global average all-in sustaining costs (AISC) rose again, up 2% q/q to US$1,342/oz as persistent cost inflation and a tight labour market continued to influence on-site operating costs. There is a silver lining however, because the rate of increase is slowing and the higher gold price has eased pressure on producer margins. 

In April, China’s wholesale gold demand climbed further as strong investment demand canceled off jewellery sector weaknesses. Chinese gold ETFs registered their strongest month on record whilst the local central bank announced gold purchases for the 18th consecutive month.

In this insightful episode hosted by John Reade and Joseph Cavatoni from the World Gold Council, guest Karim Chedid, Head of EMEA Investment Strategy for iShares and a Managing Director at BlackRock, discusses the current macroeconomic environment.

International and domestic gold prices alike retreated in January. Prices nevertheless remain high and this has been impacting gold jewellery demand in India. Gold imports too have moderated. Domestic gold prices began to trade at a premium to international prices since late January following nearly three months of trading at a discount. Meanwhile, the RBI made the highest monthly purchase of gold in eighteen months in January and Indian gold ETFs continue to see inflows.

Last week, we held an investor webinar with a focus on geopolitics, macro-economics and asset allocation in 2024. Joe Cavatoni, our Market Strategist for the Americas was joined for an insightful dialogue with two seasoned investment experts.

In this episode of the World Gold Council’s Unearthed podcast, hosts John Reade and Joe Cavatoni engage with Dr. Trevor Keel, Director of Material Value Ltd and Consultant for the World Gold Council.

Gold finished the year on a high, literally and metaphorically, as the LBMA Gold Price PM reached a new historical record of US$2,078.40/oz on 28 December – the final afternoon auction of 2023.

Gold price in INR rose in tandem (11% since October) with the LBMA Gold Price PM in USD, due to the stable INR/USD.

Investors often ask us if the gold price experiences any seasonal effects. The short answer is that gold tends to do well, on average, in both January and late summer. Reasons behind these effects can be linked to portfolio rebalancing, bond performance and seasonal gold demand.