Chart of the day - GOLD (19.03.2025)

Gold is up another 0.20% today, reaching a record $3,040 per ounce, continuing its impressive upward trend. Since the beginning of the year, the return has already reached nearly 16%, with a 6.30% gain since the start of the month. Among commodities, only silver and coffee have outperformed gold this year.

This week, gold's rise is being driven by tensions in the Middle East and trade uncertainty. Concerns over economic slowdown and recession risks, fueled by U.S. President Donald Trump’s tariff policies, are boosting demand for gold among both institutions and retail investors. The Federal Reserve’s interest rate decision today also plays a crucial role. If the Fed takes a dovish stance regarding the impact of tariffs on economic growth, it could support further price increases. Markets are also awaiting Fed Chair Jerome Powell’s speech, which may provide additional insights into monetary policy.

Central bank demand for gold dropped by 60% year-over-year in January, but forecasts still indicate continued accumulation in the coming months. Despite this temporary slowdown in central bank purchases, growing investor interest and speculation about further price increases could sustain the bullish trend. One key factor supporting rising prices is ETF activity, with funds continuing to buy gold with only minor pauses. ANZ predicts gold will hit $3,100 within three months and $3,200 in six months. Macquarie Group sees the possibility of $3,500 in Q2. Goldman Sachs forecasts $3,100 by year-end.

Source: xStation 5