The gold price has continuously increased in value over the past few months, recently reaching a peak of about $3,423 per ounce, marking the highest level in almost two months. This rise is driven by several factors, including geopolitical uncertainties, a weak US dollar, and ongoing demand from central banks.
Factors Contributing to the Gold Price Increase
Some of the key factors that have contributed to the rise in gold prices include:
- Geopolitical Uncertainties: The aggressive tariff policy of the US government and other geopolitical tensions have led to increased demand for safe investment vehicles like gold.
- Weak US Dollar: A weak US dollar makes gold cheaper for investors trading in other currencies, driving the price higher.
- Central Bank Demand: The strong demand from central banks for gold is another significant factor in the price increase.
Gold Price Forecasts
Goldman Sachs and Bank of America predict that the gold price could rise to about $3,700 per ounce by the end of 2025 and to $4,000 per ounce by mid-2026. Commerzbank expects that the gold price could reach $3,600 per ounce by the end of 2025.
These forecasts suggest that gold will continue to be an attractive investment option for investors, particularly during times of economic uncertainty.
Current Market Situation
The gold price is in a strong upward trend, with the next goal for bulls being to push the price above the resistance mark of $3,427.70 per ounce. Support levels are around $3,250, while immediate resistance levels are at $3,467 and $3,477.30.
Overall, the continuous increase in the gold price over the year indicates that precious metals remain a safe and attractive investment option for many investors.