Gold at standard levels .. Is there an exaggeration in its prices?

Gold continues to achieve exceptional gains, with which the threshold of three thousand dollars exceeded an ounce, driven by a complex set of economic, political and financial factors. However, this remarkable ascension raises questions beyond merely setting a record; Are we facing a passing wave or a long -term structural transformation in the global gold market? Is there an exaggeration in its current prices in exchange for its real value .. and we answer these questions according to what was reported by the global “Kitco News” website.
Central banks … and a safe haven strategy
One of the most prominent thing about this upscale session is the role that central banks play, whose purchases of gold intensified in recent years in recent years. After she was playing a marginal role in the market for decades, she is now influential in moving prices by raising their reserves at a regular pace.
Also read: Why is gold a good safe haven yet despite its high prices?
This behavior reflects a shift in the vision of the central banks of gold, from being just a traditional reserve origin, to a strategic tool for transmission from geopolitical risks and US dollar fluctuations, and perhaps even from the international financial system itself.
Geopolitical tensions … between fear and demand
History shows that gold always benefits from political turmoil and international conflicts, but what is happening today goes beyond the traditional style. The world is witnessing the multiplicity of foci of tension, from Eastern Europe to the Middle East, at a time when geopolitical uncertainty and the division of the world order are increasing to blocs.
All this enhances the position of gold as the “crisis currency”, and gives it sustainable support, not only from individual investors, but from the countries themselves.
Does the rise of gold reflect the weakness of the dollar?
One of the factors that were accompanied by the high price of gold is a decrease in the value of the US dollar, which strengthened the attractiveness of the yellow metal for investors abroad. It is known that the relationship between gold and the dollar is an inverse relationship: the more the dollar declines, the more the gold becomes relatively cheaper for buyers in other currencies, which increases the demand for it.
Also read: Gold prices achieve a new jump with the anticipation of US inflation data
However, the image is more complicated; The decline in the dollar does not seem to be the result of cash factors, but rather transformations in confidence in the international financial system, with some countries towards diversifying their assets away from the American currency.
Institutional investment … and the growing speculation
Another aspect that explains the rise of gold is the investment momentum by financial institutions and the Divide Funds, which found in gold an opportunity to achieve guaranteed returns in light of the slowdown in stock markets and fears of global economic slowdown.
Also, major institutions such as Bank of America, GB Morgan and Goldman Sachs raised their expectations for the price of gold during the year 2025, to range between 3300 and 3500 dollars an ounce, based on the analysis of long -term trends, sustainable demand waves from central banks, and changes in global monetary policies.
Did gold exceed its true value?
Despite all economic and geopolitical justifications, some analysts ask a question about whether gold has already entered into the evaluation area. The strong and rapid rise pushes to warn of the possibility of price corrections, especially if international tensions are calm or monetary policies are stabilized.
But on the other hand, others believe that gold now reflects not only an economic value, but also a global view of long -term savings tools, in a world where digital assets are volatile, paper currencies are burdened with debt, and central banks themselves are looking for a haven.
Gold reserves: a global race for financial influence
Data indicates an escalating race between major countries to enhance their gold reserves. Russia raised the value of its golden stock to more than $ 217 billion by March 2025, overcoming China, and ranked fifth in the world.
On the other hand, the United States continues to issue the list of the largest gold owners, with possessions exceeding 8133 tons, representing more than 74% of its total cash reserves, while European countries such as Germany, Italy, and France are followed.
This race reflects an increasing awareness of the importance of gold in building a strategic critical force, whether to confront sanctions, or as a guarantee of the stability of local currencies.
Does gold rise continues?
In light of the current factors, the rise in gold prices appears not to be a temporary circumstantial result, but rather a shift in the structure of the global financial system. With the continued international tensions, the scales of economic power and changes in monetary policies change, gold is filtered to maintain its high position, with the possibility of recording more rises during the year 2025 and beyond.
But as in all assets, fluctuations remain part of the equation, and investors still need a balance between caution and opportunities.