Gold Hits Record High, Bitcoin Lags: Which Investment Shined in 2024

Gold Dominates 2024

Introduction:
The precious metal, gold, has had a stellar year in 2024, surging by about 27% and reaching a new all-time high.

Gold’s Meteoric Rise:

• Macroeconomic Factors: Driven by wars, election uncertainties, and central bank purchases.
• Price Surge: Entered the year at $2,065/oz and skyrocketed to $2,622.
• Future Predictions: Goldman Sachs predicts it could reach $2,700 if the US imposes new financial sanctions or due to its debt burden.

“Gold is our strategists’ preferred near-term long… also their preferred hedge against geopolitical and financial risks.” – Goldman Sachs

!XAUUSD Year-to-Date. Source: TradingView

What About Bitcoin?

Bitcoin’s Performance:

• Volatility vs. Stability: Seen as both a digital replacement for gold and a risky asset.
• Price Movements: Started at approximately $42,200 on January 1st; hit nearly $74,000 within three months but later dipped below $50K before stabilizing around $63K.

Despite its volatility:

• BTC posted gains of roughly 50% in 2024—nearly double those of gold.

!Bitcoin Price Chart Year-to-Date. Source: TradingView

Conclusion

While gold has had an impressive run in 2024 with significant gains driven by macroeconomic factors and expert predictions of further growth, Bitcoin has outperformed it with even higher returns despite its volatility.

References

1. Goldman Sachs – Gold Prices Forecast to Climb to Record High
2. CBS News – How High Will Gold Prices Climb? October Predictions
3. CryptoPotato – Bitcoin Above $62K & More Fed’s Rate Cut Aftermath