Commerzbank Analysis: Gold's Strong Performance in 2024

Commerzbank Outlines Gold's Performance in 2024

Commerzbank has reported a remarkable surge in gold prices, which have risen by 33.43% year-to-date, reflecting the asset’s enduring appeal as a safe haven. As of October 29, gold trades at $2,752.48, significantly above its opening range of $2,056 to $2,078 in January.

Investment Gains from Gold

If you had invested $1,000 in gold at the beginning of 2024, it would now be valued at approximately $1,334, yielding a gain of $334. Gold's price opened positively today, hitting $2,758.37, edging closer to its all-time high. The expected trading range for today is between a support level of $2,735 and a resistance level of $2,760, with potential for a bullish trend if it surpasses the $2,758.40 mark, potentially leading to new highs around $2,782.

Mixed Demand Signals Amid Rising Prices

As gold approaches its all-time highs, demand signals remain mixed. According to Carsten Fritsch, a commodity analyst at Commerzbank, high prices have dampened gold demand, particularly in China, which experienced an 11% drop year-over-year in the first three quarters of 2024, with a 27.5% decline in jewelry demand. However, safe-haven investments show a contrasting trend with a 27% increase in demand for gold bars and coins.
This duality highlights the ongoing pressures gold faces in traditional market segments while solidifying its safe-haven status amid economic uncertainties. Despite traditional pressures, gold’s role as a store of value remains vital, keeping its long-term prospects attractive for investors.