Gold prices have been volatile in recent times. The yellow metal is expected to continue to be affected by geopolitical events surrounding the administration of President-elect Donald Trump. Under these circumstances, some market analysts remain optimistic about gold, expecting the precious metal to see further gains until 2025.
Speaking about future expectations, the head of commodity research and macroeconomics at Asset Management, Shah, indicated that gold could reach unprecedented levels if the value of the US dollar declines significantly in the coming years. According to Shah, if the strength of the dollar declines in 2025, gold could receive additional support that would push it towards the $3,000 per ounce level.
Shah added that there are several factors that could lead to a weaker US dollar.
such as rising inflation or the Federal Reserve’s expansionary monetary policy. If the Fed decides to reduce interest rates or continue printing money, this will further weaken the dollar, increasing the attractiveness of gold as a safe haven for investors.
On the other hand, many experts expect the geopolitical environment to remain unstable in the near future.
which increases the demand for gold as a hedge against economic risks. With increasing concerns about inflation and the depreciation of currencies.
investors are turning to gold as a means of preserving their wealth. Despite this optimism, some analysts believe that the market may face some challenges before reaching these high numbers. However, they acknowledge that economic factors, such as the decline of the dollar and high inflation rates, will remain the main factors driving gold prices higher. Today, gold is considered one of the most attractive assets in the financial markets. With positive expectations for 2025, the yellow metal continues to attract attention as a safe haven for investors in light of volatile economic and political conditions.
The fluctuations of the US dollar will be one of the most prominent factors that will determine the path of Gold prices
Gold prices have been volatile recently, and the precious metal is expected to continue to react to global geopolitical and economic uncertainty. Despite these fluctuations, some analysts are optimistic about the future of gold.
and expect the metal to continue rising until 2025.
In a recent interview, the head of commodity research and macroeconomics at Asset Management said that gold could reach new record levels if the US dollar declines sharply in 2025. He added that the decline in the dollar will significantly support gold prices.
which could push it to $3,000 per ounce.
Shah pointed out that the volatility of the US dollar will be one of the most prominent factors that will determine the path of gold. He explained that the policies of US President-elect Donald Trump.
which focus on “America First,” may provide temporary support to the dollar at the beginning of the year. However, maintaining this momentum will be difficult in the future, especially with the increasing government deficit in the United States.
He explained that the high fiscal deficit will lead to increased debt, which will weaken the US dollar over time. If this trend continues, demand for gold as a safe haven against currency depreciation will increase. He added that inflation will also be a factor that will increase the attractiveness of gold as a hedge.
On the other hand, the market is witnessing an increase in demand for gold from investors looking for safe assets in volatile economic conditions. Gold is considered one of the best assets to hedge against inflation and currency depreciation. In this context, Shah believes that gold will be in a strong position in the coming years.
if the dollar continues to decline and inflation increases in the world.
There are several influential factors that support his expectations
Gold prices have recently witnessed significant fluctuations, and many analysts believe that the precious metal may reach record levels in the near future. One of these analysts, the head of the commodity and macroeconomic research department, spoke in a recent interview about the factors that could support a significant rise in gold prices, reaching $3,000 per ounce.
He explained that there are several influential factors that support his expectations, starting with the monetary policy pursued by the US Federal Reserve. The Federal Reserve has begun a monetary easing cycle.
which includes lowering interest rates, which has led to a decline in bond yields. Shah considered this reduction in yields to be a golden opportunity for gold.
as precious metal becomes more attractive to investors with lower bond yields.
He said, “As we return to a lower interest rate environment, bond yields have declined, and investors are ready to buy gold again.” He added that gold prices will remain on a positive path as long as these favorable economic conditions persist. Therefore, gold could witness increases in its prices.
especially if the global economic situation continues to be affected by accommodative monetary policies.
However, despite his optimism about gold, Shah noted that there are limits to the price rise in the coming year. According to his forecast, gold prices may trade around $2,850 per ounce by the fourth quarter of next year. He justified this by saying that reaching $3,000 would require a significant decline in bond yields from their current levels.
He also explained that overall situation remains positive for gold.
but he believes that increasing demand for gold requires further easing in monetary policy.
and he added: “I initially expected the price to reach $3,000, but based on my updated forecast, it will require a significant decline in bond yields.”
