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Mar 04, 2025

Gold rises—historic levels ahead?

Gold continues to perform strongly amid economic and geopolitical changes, currently trading at $2,916 per ounce, raising questions about its ability to reach $3,000 anytime soon.

Factors supporting the rise in gold:

  •  The US Federal Reserve's monetary policies: If the Federal Reserve decides to ease its monetary policy and cut interest rates, this may lead to an increase in demand for gold as a safe haven, which may push it to new levels.
  •  Geopolitical tensions: The turmoil in global markets and trade wars enhance the attractiveness of gold as a tool for hedging against risks, which may contribute to its further rise.
  • The performance of the dollar and bond yields: There is usually an inverse relationship between gold and the US dollar, as the weakness of the US currency or the decline in Treasury bond yields supports gold prices.
  • Institutional and investment demand: The continued increase in gold holdings by central banks and hedge funds reinforces the upward trend, as it is seen as a strategic asset for preserving value.
  Stacked gold bars and coins on a reflective surface with a financial chart in the background, representing gold market trends.

Target levels:

If gold is able to break through the $2950 - $2975 levels steadily, it may open the door to testing the $3000 barrier in the near future, especially if the factors supporting the rise continue. However, any signs of monetary policy tightening or a stronger US dollar could lead to a downward correction in prices.
 
Under current conditions, gold still has strong upward momentum, but breaking the $3,000 per ounce barrier will require continued economic and political pressures to support demand for it. 

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