Gold report Q2 2024 : Market performance and macro factors

Introduction
In the first part of our quarterly Gold Report, we review the performance of the gold price and touch upon other asset classes as well as explore significant macro factors, including bond yields, the US Dollar and inflation expectations.
Key facts from Q2 2024
- Gold price return in Q2 +4.3%
- Gold price return YTD +12.8%
- Real bond yields edged higher to 2.1% at end of Q2
- Number of expected Fed rate cuts Two by the end of 2024
- US Dollar Index +1.3% in Q2
Quarterly price performance
The gold price appreciated 4.3% in Q2 2024 to end the quarter at $2,327. During the period, gold did generate several new all-time highs, however, with the new record price of $2,450 made after markets opened on 20th May. There were three key drivers of gold over the quarter: geopolitical risks, central bank purchases and macro factors captured through expectations of when the Fed will make its first rate cut this cycle.