The price of gold may reach 3000 dollars faster than expected amid China’s purchases

It is expected that the continuous uncertainty in the market will pay the price of gold to new standard levels in the near future, especially with China’s intensification of its purchases of yellow metal, which speeds up the price of gold price of $ 3000, according to the newspaper “South China Morning Post”.
Last weekend saw a slight decrease in prices due to profit reaping after the strong gains that were recorded earlier in the week, and this decrease was affected by the proposal of US President Donald Trump to reduce sanctions on Russia as part of a possible deal to end the war between Russia and Ukraine

Gold .. an increasing demand amid fluctuations

The financial scene is still volatile, as Trump’s commercial policies add to global economic concerns, in addition to imposing 25% customs definitions on cars, medicines and microscopic chips that expanded customs tariffs on wood and other commodities.
These policies have fueling investor concerns, which led to an increase in the demand for gold as a hedge tool.
Also read: Why is gold a good safe haven yet despite its high prices?

Gold purchases in China

Industry players said that China’s decision to allow insurance companies to invest in gold would be a new group of buyers and complete the purchases carried out by global central banks, which may push prices to new levels.
The price of gold increased by more than 12% this year to a record level of $ 2954 an ounce (28.3 grams) last Thursday, according to data collected by Reuters.
Also read:
The rise came after an increase of 26% in 2024, which is the largest annual gain in 14 years, while Goldman Sachs raised its forecasts between 3100 and 3300 dollars an ounce of 2025.

Diversify investments using gold

On February 7, Beijing announced that 10 major insurance companies will be allowed to allocate up to 1% of their assets in gold to diversify their investments.
Stephen Ennis, the administrative partner of the Banglades -based asset management company, said flows could reach 27 billion dollars.
The rise in gold prices in recent months have been largely linked to the escalation of geopolitical tensions in the period before Donald Trump’s victory in the presidential elections in November, as a customs tariff war erupted after returning to the White House in January.

World Gold Council

According to the World Gold Council, global central banks bought 1045 tons of gold last year, compared to 1037 tons in 2023.
This trend, which is due to diversity away from the US dollar in feeding the gold height about 3000 USD.
Analysts believe that “if Trump continues to move forward in his commercial policies, other countries are responded to, then we can surely see the price of gold exceeding 3 thousand dollars in the next few weeks,” analysts believe.
“The high demand by central banks alone may raise gold prices by 9%,” said the two analysts in Goldman Sachs Lina Thomas and Dan Strewvin.
Economic concerns are also reflected in the Michigan University’s Consumer confidence index for the month of February, which indicated a decrease in US consumer confidence amid fears of high costs due to customs duties.

Gold market variation

The rise in gold prices had a different impact on global demand. In India, the standard high prices resulted in the reducing jewelry purchases, as gold imports reached its lowest level in six months in January.
However, the investment demand has increased, as the investment funds circulated in gold witnessed unprecedented flows, according to Kavita Chako, head of the Research Department of India in the World Gold Council.
In light of the continuous economic and geopolitical uncertainty, analysts expect gold prices to remain in an ascending path, which enhances its position as a major safe origin in global markets.