Gold prices have surged nearly 30% this year, driven by inflation fears, geopolitical tensions, and global trade uncertainties. With the precious metal hitting all-time highs, investors are now questioning whether this rally can continue—or if a pullback is imminent.
Gold’s Stunning Performance in 2024
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Year-to-date gain: ~30%
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12-month return: 44%
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3-year annualized return (GLD ETF): 21.4% (far above the historic 8% average since 1971)
This explosive growth has left some investors nervous about a potential correction, but George Milling-Stanley, Chief Gold Strategist at State Street Global Advisors, believes gold will keep breaking records through 2024.
Why Gold Prices Could Keep Rising
Milling-Stanley, a 50-year gold market veteran who helped create the first gold-backed ETF (GLD), highlights three key drivers for gold’s continued strength:
1. Geopolitical Turmoil
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Ongoing conflicts and trade wars (U.S. tariffs, EU-China tensions)
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Gold historically thrives in uncertain times
2. Interest Rate Uncertainty
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Fed rate cut expectations could weaken the dollar, boosting gold
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Persistent inflation keeps demand for gold as a hedge strong
3. Macroeconomic Risks
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Global recession fears
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Central banks stockpiling gold to diversify reserves
Milling-Stanley’s Outlook: More Records Ahead
In a recent interview on “Money Life with Chuck Jaffe,” Milling-Stanley stated:
“We still have a lot of geopolitical turbulence, and gold historically performs well during turmoil. With so much uncertainty on rates and macro risks, gold remains a smart hedge—I’ve always turned to it, and it’s served me well.”
Should Investors Stay Bullish on Gold?
While past performance doesn’t guarantee future gains, the current economic and political landscape suggests gold could keep climbing. Key factors to watch:
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Fed policy shifts (rate cuts = bullish for gold)
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Escalating trade wars (tariffs could spur more safe-haven demand)
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Central bank buying (record purchases in 2023-2024)
Bottom Line
Gold’s historic rally may not be over yet. According to Milling-Stanley, new all-time highs are likely in 2024, making gold a critical asset for diversified portfolios.
