Factors Influencing Gold Prices
The gold price recently reached a weekly high, driven by increasing demand for safe assets. This demand is fueled by trade uncertainties and geopolitical tensions, as investors often flee to gold as a safe haven in times of uncertainty.
Geopolitical Tensions
Increasing geopolitical tensions lead investors to view gold as a safe asset. This can cause prices to rise in the short term, especially in the event of conflicts or political crises.
Trade Uncertainties
Trade uncertainties, arising from protectionist measures or trade wars, can also increase the demand for gold. In such times, investors seek stable values to protect their wealth.
Inflation and Economic Uncertainty
The fear of inflation and economic instability can also push gold prices higher. Gold is often seen as a hedge against inflation and currency devaluation.
Central Bank Demand
The demand for gold from central banks is another important factor. When central banks buy gold to strengthen their reserves, it can push prices higher.
Current Gold Price Development
- April 2025: The gold price started the month at around €2,889.85/oz and experienced a sharp correction to €2,721.30/oz. It then recovered to reach a monthly high of €2,975.42/oz.
- May 2025: The price started at €2,887.56/oz and reached a monthly high of €2,982.20/oz.
- June 2025: The gold price started at around €2,908.20/oz and has so far reached a monthly high of €2,965.45/oz.
Forecasts for 2025
Goldman Sachs expects that the gold price could rise to $3,000 per ounce by the end of 2025, driven by geopolitical risks and demand from central banks.
General Forecasts: Should geopolitical tensions or economic uncertainties increase, the price could temporarily rise above €3,000 per ounce.
Overall, it is evident that the gold price is heavily influenced by geopolitical and economic factors and continues to be viewed as a safe asset.