Gold prices have been on a strong upward trend in 2025, with analysts predicting that the metal could touch USD 3,000 per ounce by the second quarter of the year.
According to a report by Metals Focus, a metals research consultancy firm, gold’s rally has been fuelled by economic uncertainties, geopolitical tensions, and investor sentiment.
It said, “the price surge raises the risk of short-term profit-taking, we expect the bullish trend to continue, with our base case forecast for Q2.25 seeing a high of USD 3,000”.
On February 19, gold hit a record high of USD 2,947 per ounce before retreating slightly. However, it has remained above the USD 2,900 mark, showing resilience despite a stronger US dollar, rising bond yields, and the Federal Reserve’s cautious stance on interest rate cuts this year.
The report highlighted that gold’s strength in 2025 has been largely driven by economic and political uncertainties, particularly in the US. The new US administration’s policies, including widespread tariffs, have added to market concerns, pushing investors toward safe-haven assets like gold.
The report stated “Prices have been resilient even as the US dollar and yields have risen and as the US Fed signalled caution about the likelihood of rate cuts in 2025”.
In addition, the report mentioned that geopolitical tensions have played a key role in supporting gold prices. The unexpected moves by the US in the Gaza conflict and the ongoing war in Ukraine have increased uncertainty in global markets, prompting investors to seek refuge in gold.
Meanwhile, Europe’s economic situation remains fragile, further boosting demand for the precious metal.
While some analysts warn that the recent price surge could lead to short-term profit-taking, Metals Focus remains optimistic about the overall bullish trend. The report expects gold to reach as high as USD 3,000 per ounce by the second quarter of 2025.
Gold’s steady climb this year, even in the face of stronger economic indicators in the US, signals continued investor confidence in the metal as a hedge against risks. As global uncertainties persist, gold is likely to remain a key asset for investors looking for stability. (ANI)
