Gold price to increase further

 

Based on recent U.S. macroeconomic data and market trends, gold prices are poised to continue their upward trajectory.

Key Factors Driving Gold's Rise

• Economic Uncertainty and Inflation Concerns: The U.S. economy has shown signs of slowing, with GDP growth in Q4 2024 at 2.3%, below expectations. This, coupled with persistent inflation, has heightened investor demand for gold as a safe-haven asset.

• Federal Reserve's Monetary Policy: Anticipation of potential interest rate cuts by the Federal Reserve has weakened the U.S. dollar and lowered Treasury yields, making gold more attractive to investors.

• Geopolitical Tensions: Global geopolitical uncertainties, including trade disputes and regional conflicts, have further increased gold's appeal as a secure investment.

• Central Bank Purchases: Central banks, notably in China, have been increasing their gold reserves, supporting higher prices.

Current Market Outlook

As of early May 2025, gold prices have reached historic highs, with spot prices around $3,256 per ounce. Analysts project that gold could average $2,498 per ounce in 2025, driven by continued demand and supportive monetary policies. 

In summary, the combination of economic indicators, monetary policy expectations, and geopolitical factors suggests that gold prices are likely to remain elevated in the near term.

 Although geopolitical tension has eased, the market is still uncertain. Therefore, focus on gold buy positions.