During September 2024, gold prices experienced a notable surge, breaking new records. Specific milestones and events that influenced this performance include:

Price Performance: Gold reached a peak of $2,689.40 per ounce on September 24, 2024, nearly surpassing the $2,700 mark. Throughout the month, gold futures were consistently elevated, driven by a series of geopolitical and economic events.

Federal Reserve Interest Rate Cuts: The Federal Reserve implemented a 50-basis point cut to its benchmark interest rate, lowering it to a range of 4.75% to 5.00% in mid-September. This decision weakened the U.S. dollar by 0.43%, which contributed to gold’s rise. The Fed's move was aimed at sustaining economic growth but inadvertently made non-yielding assets like gold more attractive.

Geopolitical Tensions: Key geopolitical events, including escalating conflicts in Israel and Lebanon, further exacerbated market uncertainty. Military actions between Israel and Hezbollah, alongside the ongoing war in Ukraine, drove investors to seek safety in gold as a hedge against potential global instability​.

Central Bank Purchases: Central banks continued to bolster their gold reserves, with notable purchases by countries like India, which added 43 tonnes of gold, and Poland, which added 14 tonnes by July 2024​. These acquisitions, aimed at diversifying away from the U.S. dollar, helped sustain strong demand for gold.

Inflation and Economic Concerns: Despite inflation stabilizing in some regions, broader economic uncertainties, including a 6.9-point drop in U.S. consumer confidence (the largest monthly decline in three years), contributed to gold’s appeal. Investors continued to view gold as a reliable hedge against inflation and future economic downturns

Weaker U.S. Dollar: The weakening U.S. dollar throughout September made gold more affordable for foreign buyers, further boosting demand. The dollar’s decline directly contributed to gold’s rise, with the dollar index falling to 100.371 by the end of the month​.

In conclusion, September 2024 saw a confluence of factors, including monetary policy shifts, geopolitical instability, central bank demand, and economic uncertainty, that pushed gold prices to near-record highs. Analysts predicted further gains, with some forecasts projecting gold prices could surpass $2,700 by year-end.