MOSCOW, July 3. /TASS/. Gold once again remained one of the best-performing assets in the first half of 2024, with its price up 12% year-to-date, according to a report from the World Gold Council (WGC).

The price of gold reached all-time highs several times from mid-March to mid-May and has increased by 12% since the beginning of the year. For most of the second quarter, it traded above $2,300 per ounce, the World Gold Council notes.

WGC believes that the rise in gold prices was driven by central bank buying, Asian investment flows, geopolitical tensions and consumer demand. It also estimated that demand from central banks will contribute to at least 10% growth in gold prices in 2023 and potentially another 5% this year.

Demand for gold

As the World Gold Council notes, the rise in prices for the precious metal may continue.

"For gold, we believe the catalyst could come from falling rates in developed markets, that attract Western investment flows, as well as continued support from global investors looking to hedge bubbling risks amid a complacent equity market and persistent geopolitical tensions," the reports says.

Gold's outlook is not without risks. A sizable drop in central bank demand or widespread profit-taking from Asian investors could curtail its performance, WGS says. However, global investors continue to benefit from gold’s role in robust asset allocation strategies, WGS concludes. Moreover, high demand for gold in the absence of large demand from the West indicates that the market is not yet oversaturated and may continue to grow, the WGC adds.