Summa Silver Corp. (TSXV: SSVR, OTC: SSVRF, FRA: 48X)
Silver Lives Here
Gold prices recorded a 26 per cent gain for the year 2024, making it one of the best-performing commodities, despite the headwinds of a stronger US dollar.
In its recently published Gold Market commentary, the World Gold Council (WGC) noted that gold continued to be supported by safe-haven demand in January, while investors weighed how U.S. President-elect Donald Trump’s policies would impact the economy and inflation.
According to analysts, gold was moderately supported by safe-haven demand, which overshadowed downward pressure from a stronger dollar and rising yields. With Trump set to be inaugurated as the next US president, uncertainty in the markets is likely to continue, providing a good reason to buy the precious metal.
Citing people familiar with the matter, CNN reported on Wednesday that Trump is considering declaring a national economic emergency to provide a legal basis for a series of tariffs on allies and rivals.
Meanwhile, the World Gold Council (WGC) pointed out that physically-backed gold exchange-traded funds (ETFs) saw their first net inflow of funds in four years in 2024.
The WGC noted that global investor demand for gold ETFs finally turned around after gold prices hit several record highs in 2024. The trend reflects investors’ preference for gold as a safe-haven asset against a backdrop of high inflation and geopolitical uncertainty.
Global gold ETFs recorded annual inflows ($3.4bn) for the first time in four years, with $778m of inflows recorded in December for the first time since 2019, with Asia and Europe topping the list of inflows, the World Gold Council said in a report. Global gold ETF inflows brought total assets under management to a record $271 billion, with holdings remaining relatively unchanged (3,219 tonnes).
In addition, global daily gold trading volumes increased by 39 per cent year-on-year in 2024 and by 37 per cent in the OTC market, demonstrating the vibrancy of the gold market and the strong investor interest in gold trading.
Analysts noted in the report that gold prices are likely to remain strong until debt concerns, central bank purchases and geopolitical risks abate. With the Biden administration nearing the end of its term, debt ceiling tensions will resurface in the middle of the month, when the Treasury may be forced to take extraordinary measures to avoid a debt default. A combination of these factors could push gold prices through the recent resistance position near $2,700.
