Gold prices surge 27% in 2024 driven by geopolitical tensions and central bank buying

Gold prices rose nearly 27% in 2024, outperforming major stock indices like the Nifty 50 and S&P 500. This marks gold's strongest performance since 2010, driven by increased demand amid geopolitical tensions and central bank purchases. Three key factors contributed to gold's rise: heightened geopolitical risks, particularly in the Middle East and Ukraine; sustained buying by central banks; and recent interest rate cuts by the U.S. Federal Reserve, making gold more appealing. The total demand for gold bullion surpassed $100 billion in the third quarter of 2024. Analysts remain optimistic about gold's outlook for 2025, with various forecasts suggesting prices could reach between $2,800 and $3,000 per ounce.