Gold Hits New Records in 2024: What It Means for the Economy

The gold rally of 2024 continues to surge, with the most traded gold futures contract hitting a new record of $2,687.30 on Tuesday, following last week’s Federal Reserve half-point interest rate cut.

Gold, historically seen as a safe haven, has gained 30% this year, surpassing the S&P 500’s 20% increase. Rising demand from central banks in China, Turkey, and India, seeking to diversify away from the US dollar, has contributed to the surge.

Despite recent stock market highs, many investors view the gold rally as a signal of caution about the US economy. In times of economic uncertainty, traders often turn to gold as a stable asset compared to stocks, bonds, and currencies.