Gold Prices Surge to Record Highs as Analysts Raise Forecasts
Gold breaches $3,100 an ounce, prompting revised price targets amid geopolitical tensions and economic uncertainty.
Gold prices have reached unprecedented heights in Dubai, as the precious metal crossed $3,100 an ounce, leading analysts to revise their forecasts significantly.
Following the recent increase, projections now suggest that gold could potentially touch $3,400 per ounce.
Investment banks including Goldman Sachs are now targeting $3,300 per ounce by the end of 2025, with Citi also raising its short-term forecast to approximately $3,200.
Despite the bullish trend, analysts urge caution, indicating that the market may be overbought.
Alex Kuptsikevich, chief market analyst at FxPro, noted the bullish momentum in gold prices but warned of the extreme overbought conditions developing in both daily and weekly trading.
In Dubai, gold prices reached historic highs on Tuesday, with 22K gold surpassing Dh250 per gram for the first time.
Reports from the Dubai Jewellery Group indicated that 24K gold was trading at Dh379 per gram, while 22K, 21K, and 18K gold were priced at Dh350.75, Dh336.5, and Dh288.25 per gram, respectively.
The increase in gold prices in the first quarter of 2025 amounts to approximately Dh62 per gram.
Internationally, gold traded at $3,145.51 per ounce, marking an increase of 1.43% on Tuesday morning.
This rise has been largely attributed to ongoing uncertainties surrounding US tariffs, which have spurred demand for gold as a defensive asset.
In the first quarter of 2025, gold has appreciated nearly 20%, marking the largest quarterly gain in nearly four decades.
Ipek Ozkardeskaya, a senior analyst at Swissquote Bank, affirmed that gold prices are on a sustained upward trajectory.
Concurrently, Linh Tran, a market analyst at xs.com, identified several supporting factors, including concerns regarding US government tariffs, global geopolitical instability, expectations of interest rate reductions from the Federal Reserve, and a robust demand for gold from central banks.
Geopolitical tensions, notably in the Middle East and various conflicts across Europe, have contributed to escalating demand for gold as a secure investment.
Central bank purchases from countries such as China and India have also bolstered the upward trend in prices, as these nations continue to expand their gold reserves.
Additionally, anticipated tariff measures by the Trump administration aimed at countries with trade deficits are adding layers of uncertainty to financial markets, prompting investors to flock to gold.
The latest reports indicated that gold had achieved its strongest quarterly performance since 1986, eclipsing the $3,100 mark.
However, there is speculation that if proposed tariff policies are delayed, the market could experience a corrective phase as investors make profit-taking decisions following such a substantial rally.
As the market continues to respond to external pressures, including upcoming tariff announcements and geopolitical developments, the situation remains fluid, drawing close scrutiny from investors and analysts alike.
Following the recent increase, projections now suggest that gold could potentially touch $3,400 per ounce.
Investment banks including Goldman Sachs are now targeting $3,300 per ounce by the end of 2025, with Citi also raising its short-term forecast to approximately $3,200.
Despite the bullish trend, analysts urge caution, indicating that the market may be overbought.
Alex Kuptsikevich, chief market analyst at FxPro, noted the bullish momentum in gold prices but warned of the extreme overbought conditions developing in both daily and weekly trading.
In Dubai, gold prices reached historic highs on Tuesday, with 22K gold surpassing Dh250 per gram for the first time.
Reports from the Dubai Jewellery Group indicated that 24K gold was trading at Dh379 per gram, while 22K, 21K, and 18K gold were priced at Dh350.75, Dh336.5, and Dh288.25 per gram, respectively.
The increase in gold prices in the first quarter of 2025 amounts to approximately Dh62 per gram.
Internationally, gold traded at $3,145.51 per ounce, marking an increase of 1.43% on Tuesday morning.
This rise has been largely attributed to ongoing uncertainties surrounding US tariffs, which have spurred demand for gold as a defensive asset.
In the first quarter of 2025, gold has appreciated nearly 20%, marking the largest quarterly gain in nearly four decades.
Ipek Ozkardeskaya, a senior analyst at Swissquote Bank, affirmed that gold prices are on a sustained upward trajectory.
Concurrently, Linh Tran, a market analyst at xs.com, identified several supporting factors, including concerns regarding US government tariffs, global geopolitical instability, expectations of interest rate reductions from the Federal Reserve, and a robust demand for gold from central banks.
Geopolitical tensions, notably in the Middle East and various conflicts across Europe, have contributed to escalating demand for gold as a secure investment.
Central bank purchases from countries such as China and India have also bolstered the upward trend in prices, as these nations continue to expand their gold reserves.
Additionally, anticipated tariff measures by the Trump administration aimed at countries with trade deficits are adding layers of uncertainty to financial markets, prompting investors to flock to gold.
The latest reports indicated that gold had achieved its strongest quarterly performance since 1986, eclipsing the $3,100 mark.
However, there is speculation that if proposed tariff policies are delayed, the market could experience a corrective phase as investors make profit-taking decisions following such a substantial rally.
As the market continues to respond to external pressures, including upcoming tariff announcements and geopolitical developments, the situation remains fluid, drawing close scrutiny from investors and analysts alike.
