Gold exceeded $ 4,000 per ounces on Wednesday, by reaching a record value, investor demand for a secure refuge due to growing economic and geopolitical uncertainty, as well as the expectations of further reductions of American federal reserves.
The price of gold on the promotic market increased by 0.9 percent, to $ 4,017.16 per ounces, while US delivery contracts increased by 0.9 percent, to $ 4,040.
Gold is traditionally considered a guarantor of value in times of instability. As one of the most successful investment instruments in 2025. years, the video gold recorded a growth of 53 percent from the beginning of the year, after in 2024. increased by 27 percent, writes Reuters.
– The market currently has great confidence in this store, so the next goal will probably be a round figure of $ 5,000, given that the FED continues to lower the rates – said independent metal trader Tai Wong.
– Casual steepes are possible, such as a permanent truce in the Middle East or Ukraine, but the basic factors of this trade – growing debt, reserve diversification and weaker will not change in medium-term – he added.
The growth of gold prices was encouraged by a combination of factors: expectations to reduce interest rates, political and economic uncertainty, strong purchases of central banks, inflows in ETF funds related to gold and weak dollar. The American blockade in the seventh day on Tuesday, which delayed the publication of key economic indicators, forcing investors to rely on alternative data sources to assess the pace and the scope of FEAD’s future moves.
The market currently awaits a rate for 25 base points at the Fedova meeting this month, with an additional reduction in the same size in December.
– The increase in uncertainty usually encourages growth in gold prices, and that form is reaffected – said the main market analyst KCM Trade Tim Waterer.
– Market dynamics of lower American interest rates and current government blocks continue to go in favor of gold. However, the temptation for the realization of profit around $ 4,000 is a potential short-term risk – he pointed out.
Analysts state that “the fear of missing the opportunity” further encourages growth. Political turmoil in France and Japan also increased demand for gold as safe haven.
Analysts expect strong inflows in the ETF funds supported by gold, continued purchase of central banks and further reduction in US interest rates, which should support the price of gold and in 2026. years. Years. Goldman Sachs and UBS have already raised their forecasts.
In the market of other precious metals, the spot silver increased by 1.3 percent to $ 48.44 per ounce, 2.4 percent to $ 1,657.33 by 2.3 percent to $ 1,368.68.
