Source: Al-Mutadawa Al-Arabi 11/2/2025
Gold resumed its uptrend after breaking through the multi-month consolidation zone, reaching $2,940 an ounce, according to expectations of foreign exchange market analysts at Societe Generale. This technical move shows that gold may enter a new phase of growth, with expectations that it will continue climbing to levels between $2985 and $3000. However, analysts warn that this move could be an extension for some time, while there have been no real signs of gold falling yet.
Technical analysis of gold suggests strong support at the $2830 level. In the event of any short-term decline, gold is expected to maintain this support, increasing the likelihood that it will continue the uptrend. Moreover, after gold surpasses the $2940 level, traders consider the $2985/$3000 level a strong resistance that may limit its rise. However, current analysis suggests that the market momentum could push gold past this level.
One of the main reasons for optimism about gold at the moment is the investment innovation that has come from China. In an unprecedented investment shift, China has launched a pilot program that allows insurers to buy gold for the first time. The move could pave the way for huge investments in the precious metal, estimated at billions of dollars, which could significantly boost demand for gold and give it an additional push towards new highs. These investments should increase liquidity in the gold market and boost prices in the near future.
This Chinese move marks an important development in the global gold markets, as it drives increased demand for the precious metal, which investors view as a safe haven during times of economic and political instability. With rising global economic tensions, inflation fears and financial crises, gold is an attractive investment option for many investors. This, in turn, contributes to pushing prices higher, and makes gold the focus of attention of many.
Despite warnings that the current movement may stretch longer than expected, the outlook for gold remains generally positive, especially with demand-driving factors like investment innovation in China and an improving global economic outlook that could reinforce gold’s safe-haven status. As a result, gold appears to be in a strong position moving forward, with expectations that its prices will continue to rise and set new record levels in the future. Societe Generale points to promising prospects for the future of gold, supported by Chinese investments and global economic factors that may contribute to raising its prices. Despite warnings that the upside could extend for some time, the growing demand for the precious metal makes it difficult to ignore the prospect of it rising to new highs.
