By Swann Collins, investor, writer and consultant in international affairs – Eurasia Business News. March 29, 2025. Article no 1464.
As I predicted last February, gold’s performance in the first quarter of 2025 has been remarkable, marking its strongest quarterly gain in nearly four decades.
Gold price hit $ 3,085 per troy ounce on Friday March 28, a +37% gain over the past 12 months. Gold ended the week with a 2.27 % gain.
This surge is attributed to several key factors:
Safe-Haven Demand: Gold has traditionally served as a safe-haven asset, and its appeal has increased amid rising geopolitical tensions and economic uncertainties. The ongoing conflicts and global economic instability have driven investors to seek refuge in gold, contributing to its price rise.
Gold is a long-term store of value and this storage capacity is standardized internationally. Each troy ounce of gold has the same value. The yellow metal is an asset with intrinsic value in itself, capable of maintaining its purchasing power throughout the centuries and around the world.
Dollar Weakness: The U.S. dollar has experienced a decline, making gold more attractive to international investors. A weaker dollar typically boosts gold prices as it becomes cheaper for buyers using other currencies.
Central Bank Demand: Central banks have been increasing their gold reserves, further fueling demand and supporting higher prices. This trend is expected to continue, providing a solid foundation for gold’s price growth.
Central banks have purchased over 1,000 metric tons in 2024 for the third consecutive year. Although annual purchases slightly declined by 1% to approximately 1,045 tons, there was a significant surge in the fourth quarter, where purchases reached 333 tons.
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Investment Strategies: Analysts from major financial institutions, such as Bank of America and JPMorgan, have raised their gold price forecasts, citing factors like increased investment demand and geopolitical risks. These bullish projections have contributed to gold’s upward momentum.
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Given these factors, gold’s price above $3,000 is not only sustainable but also likely to see further increases in 2025. We expect potential targets ranging from $3,300 to $3,500 per ounce in the near future.
Goldman Sachs raised on Wednesday its end-2025 gold price forecast to $3,300 per ounce from $3,100, citing stronger-than-expected ETF inflows and sustained central bank demand.
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© Copyright 2025 – Eurasia Business News. Article no. 1464.
Eurasia Business News 