Factors Influencing the Gold Price
The gold price has been continuously reaching new all-time highs in recent months, attributed to several factors. This development is supported by persistent uncertainties in global trade, expectations of monetary easing by the Federal Reserve, and a weaker US dollar.
Ongoing Trade Uncertainties
The ongoing tensions in global trade, particularly due to trade conflicts and geopolitical instabilities, lead to increased demand for safe assets like gold.
Monetary Easing
Expectations of loose monetary policy by the Federal Reserve, including potential interest rate cuts, support the gold price. Such a policy can weaken the value of the US dollar and cause the gold price to rise.
Weaker US Dollar
A weaker US dollar increases the value of gold in dollars since it becomes cheaper for foreign buyers to acquire gold. This also contributes to the stability of the gold market.
Central Bank Purchases
Increased gold purchases by central banks, especially from emerging markets, are another factor driving up the gold price.
Inflation Concerns and Recession Fears
Concerns about rising inflation and potential recessions in the global economy lead to increased demand for gold as a safe investment form.
Forecasts and Expectations
Goldman Sachs expects that the gold price could rise to $3,700 by the end of 2025, with the potential for $4,000 by mid-2026 if the global economy enters a recession.
Expert Opinions vary, but many see the gold price continuing on an upward trend due to persistent geopolitical instabilities and a weaker US dollar.
Short-term Forecasts suggest that the gold price could reach new highs in the coming weeks, with some experts predicting an increase to $3,320.
Overall, the gold market remains stable due to ongoing uncertainties and supportive macroeconomic factors, continuing to show potential for future price increases.