Gold prices rise on Tuesday, despite a stronger dollar. Investors remain confident that central bank demand will support the yellow metal. Spot gold climbed 1.2% to $2,932.94 per ounce, while April gold futures increased 1.8% to $2,952.04 per ounce.
Goldman Sachs recently revised its gold price forecast to $3,100 per ounce by the end of 2025. Previously, the estimate stood at $2,890 per ounce. The primary driver of this bullish outlook is the increased demand from global central banks.
According to the investment bank, central bank purchases will contribute a 9% rise in gold prices over the next two years. Additionally, falling global interest rates may boost ETF holdings, further supporting gold prices.
Despite softer safe-haven demand, uncertainty over U.S. policies could continue to influence gold markets. If trade policy concerns persist, Goldman Sachs projects gold could reach as high as $3,300 per ounce.
Emerging market central banks have significantly increased their gold reserves in response to global economic uncertainties. Many are concerned about U.S. trade policies and the dollar's strength, leading to increased gold purchases.
The demand for gold as a hedge against economic and geopolitical risks remains strong. This trend is expected to continue as global trade tensions and economic uncertainties evolve.
Concerns over U.S. trade tariffs remain a key factor influencing gold markets. President Trump signaled that his reciprocal tariffs on U.S. trading partners will take effect by April. However, reports indicate that the European Union is considering countermeasures, potentially escalating trade tensions.
Additionally, the Federal Reserve’s stance on interest rates is another major factor. Fed Governor Christopher Waller recently stated that while Trump’s tariffs might not lead to significant inflation, interest rates could remain steady for longer. This policy direction supports gold as an attractive investment option.
While gold prices rise, broader metal markets experienced mixed performance. Platinum futures dropped 1% to $1,007.85 per ounce, while silver futures gained 1.7% to $33.417 per ounce.
In industrial metals, benchmark copper futures on the London Metal Exchange increased by 0.7% to $9,464.00 per ton. However, March copper futures declined by 1.7% to $4.5838 per pound due to profit-taking after a strong rally since late January.
Gold prices continue to rise against the strong dollar, supported by increasing central bank demand. With Goldman Sachs forecasting a price target of $3,100 by 2025, the outlook remains positive. Market uncertainties, trade policies, and interest rate decisions will play a crucial role in shaping the future of gold prices.
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Gold prices rise despite a strong dollar as central bank demand remains high. Goldman Sachs forecasts $3,100 per ounce by 2025.
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