Gold Prices Edge Up as U.S. Dollar Weakens, but Rising Bond Yields Pose Challenges
6.1.2025.
- Gold prices are slightly up, with February gold rising by $2.60 to $2,657.30, supported by a sharp sell-off in the U.S. dollar index.
- However, rising U.S. Treasury yields are a bearish outside-market element for gold.
- Goldman Sachs has pushed back its forecast for gold reaching $3,000 an ounce to mid-2026, due to expectations of fewer U.S. interest-rate cuts.
- The U.S. dollar index has sharply fallen, adding support to the precious metals markets, while bond yields are on the rise, putting pressure on U.S. government debt.
Gold in Focus: Will It Reach $3,000 per Ounce in 2025?
4.1.2025.
After the instability that marked 2024, many are hoping for a calmer 2025. However, investors disagree, as evidenced by the spotlight on gold. The price of gold rose by 28% in 2024, outperforming the S&P 500 index. Experts like JP Morgan and Citibank predict further growth to $3,000 per ounce due to lower interest rates, geopolitical turmoil, and central banks increasing their gold reserves.
In addition to investment banks, analysts like the Global Risk-Reward Monitor forecast that gold could reach $10,000 by the end of the decade, especially if there are changes in the global trading system. A key reason for this is the reduced reliance on the U.S. dollar, with the possibility of gold being used in trade transactions. This price adjustment could drastically impact global finances.