The price of gold has difficulty attracting buyers despite its survival near the highest level
Geopolitical tensions support gold as a safe haven
In light of the escalation of geopolitical tensions and increasing fears of the outbreak of a global trade war, investors continue to resort to gold as a safe haven to maintain the value of their assets.
In addition, expectations are strengthened by reducing interest rates by the US Federal Reserve demand for yellow metal, especially as it does not generate returns such as bonds or other financial tools.
Also read: After his rise to 3 thousand dollars .. Does gold do it and exceed 3500 this year?
The effect of monetary policy and the dollar on gold prices
The US dollar remains under pressure, as it is still close to its lowest level in several months, which provides additional gold prices.
This is due to the increasing expectations that the federal reserve will turn towards mitigating monetary policy, which weakens the dollar and increases the attractiveness of gold as a safe origin.
Does Asian stocks affect gold gains?
On the other hand, optimism about the Chinese stimulus procedures is a restricted factor for gold gains, as it contributed to strengthening Asian stock markets, which led to the reluctance of some investors to go towards the precious metal.
Investors are also awaiting the meeting of the Federal Open Market Committee, which will last for two days starting from Tuesday, amid expectations indicating that the federal reserve may reduce interest rates by 25 basis points in its meetings for June, July and October.
Gold direction .. Does it continue to rise?
Technically, the penetration of the resistance level was 2928-2930 dollars an ounce last week a new incentive for speculators to climb, which strengthened the expectations of the continuation of the rising direction.
Also read:
In this context, the RPC strategists have updated their expectations for gold prices, noting the possibility of continuing to rise in the coming years, according to the Investing platform.
Gold prices expectations for the coming years
2025: The average price of gold is expected to reach $ 2844 an ounce, compared to the previous estimate at $ 2823.
2026: The expectations were largely raised to $ 3111 an ounce, an increase of 8% over the previous estimates that were 2878 dollars.
Does gold reach $ 3,300?
These expectations depend on assumptions that include a largely stable monetary policy, and the absence of any sharp economic stagnation.
In the event that these factors are achieved, the price of gold may reach more than 3100 dollars an ounce by the end of the year, and Royal Bank of Colombia expected.
Another scenario .. Gold may reach 3300 dollars per ounce
According to the scenario analysis conducted by RPC, gold prices may rise to $ 3,300 an ounce by the end of 2025, if the global economy witnessed a sharp economic stagnation or a fundamental change in monetary policy.
- For more: Follow Khaleejion 24 Arabic, Khaleejion 24 English, Khaleejion 24 Live, and for social media follow us on Facebook and Twitter
