Central bank purchases drove the biggest gain in gold prices since 2010 in 2024, at an average of 2,386.20 dollars per ounce, noted Mexican mining company Industrias Peñoles.

That quote is almost similar to Monday’s price, when the spot gold price stood at $3,372.13 an ounce, as of 14:17 ET (1817 GMT).

Central bank purchases

Peñoles referred that gold reached an average price of $2,386.20 dollars per ounce in 2024, an increase of 23.5% over the 2023 average.

This was driven by central bank purchases, monetary easing by the U.S. Federal Reserve and its traditional role as a safe haven asset. 

The price of gold changes frequently. This behavior responds to many factors. For example, purchases or sales of gold by central banks and financial institutions have a direct influence.

In addition, inflation and the possibility of a recession also affect its value. On the other hand, variations of the dollar against other currencies have an impact on the market. Added to this are changes in global and regional demand for gold.

Finally, political and economic conditions, both local and international, play an important role in these prices.

Precious Metals

Silver, benefiting from the gold boom and the growing demand for this metal due to the increase in the manufacture of solar panels, traded at an average of 28.29 dollars per ounce in 2024, which implied an increase of 21.0% compared to the previous year. 

Base metal prices, in turn, were favored by the stimulus policies in China and by the better outlook for industrial activity, as a result of monetary easing and lower inflation. 

In dollars per pound, the average zinc price was US$1.26, an increase of 5.4% compared to the previous year, while copper increased to US$4.15, 7.9% above the 2023 average. 

In contrast, the price of lead decreased slightly to 0.94 dollars per pound (-2.7%), due to the decrease in demand from the automotive sector and higher inventories reported.