The price of gold has surged to unprecedented levels in euros and pounds, reflecting heightened demand amid geopolitical instability and economic uncertainty. In U.S. dollars, gold is now targeting a potential all-time high of $2,800 per troy ounce, underscoring its sustained bullish trajectory.
Market Momentum Resumes
Gold’s remarkable rally—gaining nearly 70% from its September 2022 low to an October 2023 peak of $2,790.07—has regained momentum. This revival is fueled by safe-haven investments in response to escalating tensions between Russia and Ukraine and fears of broader conflict in Europe.
Over the past week alone, gold has climbed by more than 5%, buoyed further by disappointing UK and European purchasing managers indices (PMIs). The metal has extended its winning streak to five days, nearing $2,700 and closing in on its October peak.
Against the euro and British pound, gold prices have reached record highs of approximately €2,600 and £2,200, respectively.
Long-Term Uptrend Holds
Despite a near 9% drop in early November, which saw gold fall to $2,536.86—below October’s $2,604.82 low—the swift recovery indicates that the long-term uptrend remains intact. The November low is a key support level, and as long as gold remains above it on a weekly basis, the bullish outlook is expected to persist.
Revised Year-End Targets
Following recent market corrections, analysts have adjusted their year-end forecasts. Gold is now projected to end the year between $2,800 and $2,900, slightly below the earlier target of $3,000.
The $3,000 milestone, initially expected by late 2024, is now anticipated in Q1 or Q2 of 2025. This projection aligns with the 261.8% Fibonacci extension from the September 2022-to-May 2023 advance, calculated from the October 2023 low, which places gold at $2,999.46.
Looking Ahead to 2025
Once gold reaches the $3,000 mark, it may stabilize around this psychologically significant level for several months. Central bank purchases, particularly from China, are expected to underpin prices and sustain momentum.
If gold surpasses $3,000, the next technical resistance lies at $3,113, a level tied to a key Fibonacci extension based on historical trends. Further gains could bring the $4,000 mark into focus, representing a significant psychological and technical target for traders.
Near-Term Analysis
In the short term, gold’s rapid 5% rally suggests it could soon test resistance between $2,731.64 and $2,758.53, marked by the 23 October high and 31 October lows. Breaking this range would bring the $2,790.07 peak and the $2,800 target back into play.
Support is observed around the September high of $2,685.64, with further backing between the 55-day simple moving average ($2,652.07) and the 7 November low ($2,643.36).
As long as the November low at $2,536.86 holds, gold’s short-, medium-, and long-term bullish trends remain intact, reinforcing its position as a favored asset amid global uncertainties.
Conclusion
Gold’s performance reflects its enduring appeal as a hedge against geopolitical risks and economic volatility. With its trajectory firmly upward, all eyes remain on whether it can breach the psychological $3,000 barrier in the coming quarters and what heights it might reach beyond.
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