Gold Set for 27% Annual Gain, 14.7% of Total Reserves, Amid Central Bank Purchases

Dec 30, 2024, 07:00 AM

Gold is poised to achieve one of its largest annual gains this century, with a 27% increase attributed to US monetary easing, ongoing geopolitical risks, and significant purchases by central banks. The share of gold reserves as a percentage of total central bank reserves reached 14.7% in 2023, the highest level in over 20 years. Despite a strong US dollar rally in the fourth quarter, which saw a 6.6% increase, gold is still on track for an impressive annual gain of 26%. This performance stands out in a mixed year for metals markets.