Gold Remains Well Supported as Central Banks Continue To Buy

Gold prices soared to a grounds precocious of 28% successful 2024 aft antecedently rising astir the aforesaid worth successful 2010. It continued the spike successful 2025 and entered the twelvemonth connected the beforehand ft surging 18%. However, it faced corrections this period and dipped beneath the $2,900 mark. Now that Trump’s commercialized tariffs went unrecorded connected Tuesday, the US banal marketplace and the dollar went southbound successful the charts. The dip is alarming arsenic the improvement suggests that investors stay skeptical astir commercialized tariffs and their fallout.

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Marissa Salim, Senior Research Lead astatine the World Gold Council wrote successful a recent note that golden prices could surge overmuch higher. She wrote that cardinal banks of processing countries are massively accumulating the precious metallic successful their reserves. This would pb to higher golden prices arsenic the request for the glittery metallic is higher than usual.

“The sustained buying highlights the strategical value of golden successful authoritative reserves, peculiarly arsenic cardinal banks navigate heightened geopolitical risks,” wrote Marissa. “The displacement from equipped struggle to broader economical tensions has reinforced their nett buying trend, particularly evident since 2022.”

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Marissa explained that cardinal banks purchased much erstwhile golden prices dipped entering the accumulation phase. “Many cardinal banks look to person strategically leveraged impermanent terms pullbacks arsenic buying opportunities, portion income person remained constricted and mostly tactical during terms rallies,” work the note.

When Will Gold Prices Cross $3,000?

Source: FXstreet

Goldman Sachs predicts that golden prices volition not lone breach the $3,000 mark, it could surge to $3,300 successful 2025. The concern bank’s probe expert Lina Thomas wrote successful the latest study that the XAU/USD scale could beryllium unstoppable.

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“The accrued forecast is underpinned by higher-than-expected request for golden from cardinal banks, which person been expanding their reserves of the commodity since the freezing of Russian cardinal slope assets successful 2022, pursuing Russia’s penetration of Ukraine,” the concern slope wrote.