Why is gold rising? Will the rise continue?

Gold Strengthens: Ounce Price on Track to Record, Investors Flock to Safe Haven

At a time of escalating geopolitical risks and economic uncertainties in global markets, gold has again become the most sought-after asset by investors. The price of ounces of gold climbed above $3,290 to reach one of the highest values of the year, while investment banks revised upward their 2025 targets for gold.

📊 Gold's Shining Performance and Fragile Economy Balance

• The price of ounces of gold crossed the $3,290 threshold, attracting the attention of investors.
• The rise gained momentum based on economic indicators, as well as political and geopolitical developments.
• Macroeconomic uncertainties reinforced the perception of gold as a safe haven in the long term.
• The fact that central banks increase gold reserves supports physical demand.
• In the fluctuations of global markets, gold stands out as a hedging tool.

🔥 The Trump Effect: Trade Tensions and a New Wave of Risk

• Trump's accusations against China have created a mood of panic in the markets.
• The threat of tariffs of up to 60% could trigger a new crisis in US-China relations.
• Investors see gold as the top priority in geopolitical tensions.
• The discourses have increased uncertainties in global trade chains.
• Gold serves as a protective shield against potential economic conflicts.

📈 Revised Gold Forecasts of Banks

• Goldman Sachs predicts that it could go up to $3,880 by the end of 2025.
• Bank of America's 2026 target is set at $3,350.
• UBS raises the possibility of $3,500 with purchases by central banks.
• Citi points to the $3,100—$3,500 band with short-term peak attempts.
• J.P. Morgan is targeting $3,675 for the final quarter of 2025.

🏛 Monetary Policies and their Impact on Gold

• Interest rate cut expectations are among the key elements pushing gold prices higher.
• The fall in US bond yields is reducing the opportunity cost of gold.
• The convergence of real interest rates to the negative course makes gold attractive.
• Reserve strategies of central banks create a safe harbor effect in the market.
• The trend towards gold is moving in parallel with expectations of global monetary easing.

🔍 How Much Higher Can Gold Rise in 2025?

• The macroeconomic picture maintains upside potential in the medium to long term.
• Trade wars are a potential catalyst that can trigger prices.
• The uncertainties of election periods keep the demand for safe harbor alive.
• Relaxation signals from central banks may push prices up.
• Each new wave of geopolitical risks could support gold prices.

🧠 Expert Review

Gold continues to be at the center of both short-term volatility and long-term trends. Investors need to be wary of fluctuations in the short term, while inflation retains the potential to gain value in the medium and long term depending on interest rates and geopolitical developments. However, the possibility of correction after rapid rises should be considered.

✅ Take Action

Deepen your analytics and explore opportunities early to capitalize on this potential mobility underneath. It may be time to diversify your portfolio.
Explore relevant analytics
Examine investment opportunities

🛑 Disclaimer

This content is created by Investment Desk AI and does not constitute investment advice. You should make your decisions based on your own research and expert advisors.

stock exchange, gram gold, quarter gold, dollar, euro, exchange rate, bitcoin, btc, ethereum, cryptocurrency, Nasdaq, dow jones, S&P 500, oil price, brent oil, investment, stock, bist 100, fed interest rate decision, inflation, central bank, IPO, market analysis, usa stock news, stock news, xauusd, dax, breaking news, free, gold ounce price, safe harbor investment, geopolitical risk, trade war, trump china statement, central bank reserves, interest rate cut expectation, real interest rates, bond yield, portfolio management, 2025 gold forecast, gram gold analysis, ounce gold trend, investor psychology, macroeconomic analysis, hedging strategy