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Gold Price Surge Expected: Could It Break the $4,000 Barrier?
Analysts at "Point Trader Group Mauritius Ltd" project that gold prices may witness a dramatic surge in the coming year, potentially surpassing $4,000 per ounce. This outlook is driven by a combination of geopolitical tensions and economic uncertainty, fueling the precious metal's bullish momentum, which has already seen a +30% rise since the beginning of the year.
These projections align with today’s milestone, where spot gold reached a record-breaking $3,500 per ounce for the first time ever.
In a research note, Gregory Shearer, Head of Precious & Base Metals Research at a major US bank, emphasized that ongoing recession fears and inflationary pressures—especially those linked to trade policies—will continue to support gold’s upward trajectory.
Shearer noted that robust demand from central banks, ETF inflows, and private investors remain key market drivers, as concerns over global economic stability grow. This has reinforced gold’s status as the preferred hedge asset in 2024 and likely into 2025.
Spot gold rose 0.5% to $3,440.51, after touching a session high of $3,500.05, while US gold futures jumped 0.9% to $3,454.60.
Shadi Abdo, Market Analyst at Point Trader Group, said: "Gold continues to attract dip-buyers, and the current momentum is clearly deterring large-scale selling."
He added that "persistent trade tensions—particularly between the US and China—are creating economic fog, prompting risk-off sentiment and reinforcing gold’s dominance."
Further fueling market jitters, President Trump’s renewed attacks on Fed Chair Jerome Powell and calls for interest rate cuts led to a weaker dollar and heightened financial volatility.
Daniel Ghali, Commodity Strategist at TD Securities, commented: "Uncertainty surrounding tariffs remains a key factor pressuring Asian currencies, which continues to drive robust gold-buying activity worldwide."
