The gold price has recently fallen below the 3300 US dollar mark, which can be attributed to several factors. Two of the main reasons are the strong US dollar and increased geopolitical tensions, particularly between the USA and China.
Factors influencing the gold price
1. Strong US Dollar
A strong US dollar puts pressure on the gold price, as gold is traded in US dollars. When the dollar rises, gold becomes more expensive for buyers using other currencies, which decreases demand for gold and drives the price down. Currently, the US dollar shows a slight positive trend, which further pressures the gold price.
2. Geopolitical Tensions
Increased geopolitical tensions, especially between the USA and China, contribute to heightened uncertainty in the markets. During such times, investors often seek safe assets like gold, which would typically drive up the price. However, the influence of the strong US dollar currently outweighs this, keeping the gold price under pressure despite the tensions.
3. Economic Factors
Additionally, economic factors such as US inflation and the monetary policy of the Federal Reserve play a role. Low inflation and stable interest rates can influence the gold price as they strengthen confidence in the US dollar, thereby putting pressure on the gold price.
Forecasts and Outlook
Analysts predict a gold price of around 3000 US dollars by the end of 2025, which is due to stable support from political uncertainty and potential further interest rate cuts from the Fed. The gold price could come under further pressure in the coming week if it closes below the 3300 US dollar mark.
Current Market Situation
Recently, the gold price has hovered around the 3300 US dollar mark and could fall towards the support at around 3246-3245 US dollars if the downward trend continues. The next week could be crucial to see whether the gold price stabilizes or continues to fall.