From its role as a safe haven in turbulent times to its reputation as a hedge against inflation, gold has consistently proven its worth as an investment asset. By adding gold to your investment portfolio, the precious metal can provide a buffer against market volatility and offer protection against potential losses in other asset classes — which is part of why so many investors are drawn to it.

But gold’s unique portfolio-boosting benefits aren’t the only draw, especially right now. Since the start of the year, the price of gold has been on an upward trajectory, growing in value by hundreds of dollars and breaking numerous price records on its uphill climb. That has prompted even more investors — both beginners and seasoned veterans alike — to turn their attention toward the yellow metal. 

How much has the price of gold increased so far this year, though — and is it likely to keep climbing over the last few months of 2024? Below, we’ll detail what you should know.

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How much the price of gold has increased so far in 2024

The story of gold so far in 2024 has been one of impressive and consistent growth. On January 1, gold was trading at $2,063.73 per ounce. Fast forward to August 28, and the price has soared to $2,502.53 per ounce. This represents a staggering increase of $438.80 per ounce — or an uptick of approximately 21.26% in just under eight months.

To put this into perspective, if you had invested $10,000 in gold at the beginning of the year, your investment would now be worth about $12,126 – a profit of over $2,000 in less than a year. This remarkable growth outpaces many other investment options and has solidified gold’s status as a top-performing asset in 2024.

It’s worth noting, though, that gold recently surpassed its prior records, climbing to a high of $2,525 per ounce on August 20. While the current price of $2,502.53 represents a slight dip from this peak, it still signifies an extraordinary year-to-date performance. This minor pullback from the all-time high is not uncommon in financial markets and is likely a healthy consolidation after a strong upward move.

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Will the price of gold keep climbing?

Despite the impressive gains gold has already made, many analysts believe that the precious metal’s upward trajectory may not have peaked just yet. Various factors point to the possibility of continued price appreciation in both the near and long term.

One key driver is the shifting dynamics of global demand. In addition to sustained demand from traditional investors, merging economies are showing a heightened appetite for gold. This expanding consumer base could provide sustained upward pressure on gold prices. 

The gold mining industry also faces significant challenges on the supply side. New gold discoveries have become increasingly rare and existing deposits are often in remote regions. The process of gold extraction is also becoming more complex and costly as easily accessible reserves are depleted. These supply constraints, juxtaposed against rising demand, create a favorable environment for price growth.

Another factor to consider is the evolving role of gold. As technology advances, gold’s unique properties have become critical to new applications in fields such as electronics, healthcare and renewable energy. The expansion of gold’s industrial uses could contribute to increased demand, potentially supporting higher prices over time.

Central banks worldwide are also continuing to bolster their gold reserves, a strategy often seen as a hedge against economic uncertainties and currency fluctuations. This consistent demand from major financial institutions provides another pillar of support for gold prices.

Given these factors, some experts are projecting ambitious price targets for gold. While forecasts should always be viewed with caution, many analysts believe gold could reach new milestones in the coming months, with some even suggesting it could approach or surpass $3,000 per ounce before the year’s end.

The bottom line

Gold’s performance so far this year has been very strong, with a year-to-date increase of over 21%. This surge underscores gold’s enduring appeal as both a safe-haven asset and a potential source of significant returns. And while it’s impossible to accurately predict what will happen over the next few months, there are signs that gold’s price rise could continue for some time. 

So, while there are no guarantees, investors who want to capitalize on the potential for quick returns on a gold investment may want to buy in now. Waiting could mean paying more per ounce for the precious metal and earning less profit in return.