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Quarter Three (Q3) has officially come to an end. It’s hard to believe how fast this part of the year flew by, but it’s even harder to grasp its significant impact. Breaking down the key moments of this eventful quarter can help investors prepare for the close of 2024 and beyond.

In this week’s The Gold Spot, Scottsdale Bullion & Coin Founder Eric Sepanek and Senior Precious Metals Advisor Steve Rand revisit the most important events from the third quarter–covering economic, political, and geopolitical developments – and gold’s reaction.

Political Tensions Escalate

The country collectively dodged a bullet on July 13, 2024, when a would-be assassin attempted to take former president Donald Trump’s life. Instead of bringing the political temperature down, tensions have only risen. President Joe Biden stepped down as the Democratic candidate in the 2024 presidential race only to be replaced by current Vice President Kamala Harris without holding another primary.

While presidential debacles hog the political spotlight, the burdens from a decades-long issue of a broken immigration system continue to mount. Representatives and voters from across the aisle raise the alarm about the sheer number of undocumented migrants entering the US without proper vetting and oversight. This has exacerbated tensions between the federal government, sanctuary cities, and border states, bringing the countrywide political debate to a boiling point.

Economic Red Flags

The government has attempted to happy-talk its way into a soft landing, but key economic indicators are at odds with this hopeful forecast. The weakening labor market dealt an unexpected blow to an otherwise healthy-looking market. This surprise hit prompted the Federal Reserve to launch a dramatic 50-basis-point rate cut – officially launching a period of quantitative easing (QE).

Meanwhile, a negative correlation between bonds and equities is starting to emerge, again. This bearish indicator suggests investors are fleeing equities such as stocks in favor of more secure and stable assets such as bonds. This tends to suggest incoming economic stagnation and downturn. Many experts are wondering if a recession is around the corner.

The $35 trillion national debt is the backdrop to this surging economic turmoil. In Q3, the cost to service this deficit reached a record of $1 trillion! The country’s debt-to-GDP ratio now stands at an alarming 120%, suggesting the government’s ability to pay off the debt is waning rapidly. The US debt accounts for more than 10% of global debt which towers at $312 trillion with expectations to move even higher.

Global Conflicts Grow

While the Middle East and Eastern Europe wars dominate headlines, they are just part of a larger picture of global unrest. In reality, 110 armed conflicts are currently raging across nearly every continent, highlighting the widespread instability. This scale of geopolitical tension creates an atmosphere of uncertainty, which often drives investors to seek the safety of gold. Historically, gold has been a preferred asset during times of conflict, as it maintains its value even when other markets falter. As geopolitical risks grow, more investors are turning to gold bars and coins to protect their portfolios from the unpredictable nature of these global events.

Gold’s Rally in Response

As the political and economic environment in the US descended into chaos, gold had a shining moment throughout Q3. The yellow metal climbed from $2,329/oz to a high of $2,672, representing an impressive 14.7% increase. Gold prices closed out Q3 2024 at $2,634 an ounce, just shy of all-time highs but well over the average price forecast for 2024.

For centuries, gold has been an asset where investors seek shelter during periods of volatility and instability. This precious metal’s record-setting rally throughout 2024 reflects the current shift from dollar-backed instruments to safe-haven assets.

Don’t Wait to Buy Gold, Buy Gold and Wait

In the face of overwhelming economic, political, and geopolitical uncertainty, gold remains steady. As other investors’ confidence in other assets wavers and dips, gold sees unprecedented demand from central banks, financial institutions, and retail investors alike.

All the factors that have driven gold’s surge throughout 2022, 2023, and 2024 remain unchanged. Many experts have had to revise their gold price predictions more than once due to gold’s meteoric rise.

If you’re interested in learning more about how you can protect your wealth from global instability and uncertainty, request your free copy of our Investment Grade Coins report. It’ll cover one of the highest-returning, private, and stable assets within the precious metals investment sphere.