Gold Climbs Above $2,660 as Geopolitical Tensions Rise
Dubai, UAE – The price of gold surged nearly 1% on Friday, surpassing $2,660 per ounce for the fourth consecutive trading session. This rally is fueled by a weakening dollar and mounting geopolitical uncertainties, making the precious metal an attractive haven for investors.
The upward momentum in gold prices began despite an initial dip of 3% on Monday, triggered by the nomination of Scott Bescent, a Wall Street veteran, to lead the US Treasury Department under President-elect Donald Trump. Bescent’s expected stability and focus on the US economy initially reassured markets.
However, the calm was short-lived. A truce announced early in the week between Israel and Lebanon failed to quell anxieties about global stability. These geopolitical tensions, along with concerns about potential trade wars under the incoming Trump administration, have driven investors towards gold as a safe haven.
"Trump’s return to the White House could mean unsteady ground for international trade, potentially escalating tariffs on imports," explained one financial analyst. "This kind of uncertainty pushes investors towards safe haven assets like gold."
<Ersen Airturk / Anadolu>
November 27, 2024: A bustling gold store in Dubai.
Financial institutions are predicting a continued upward trend for gold prices in 2025. "
“Rising trade tensions and concerns about the sustainability of the US balance sheet could have a significant impact on gold prices,” stated Goldman Sachs in a November 2024 research note.
“Gold bullion will rise to $3,150 per ounce by the end of 2025,” it projected, citing geopolitical risks and speculative trading as key factors.
Citibank shares a similar outlook, forecasting gold prices will nearly reach $3,000 per ounce by the first quarter of 2025. Bank of America also anticipates gold reaching around $3,113 per ounce in the early months of 2025, citing aggressive buying by central banks and a weakened dollar.
Central banks have emerged as key players in the gold market, actively increasing their reserves. In the first half of 2024, central banks collectively bought 483 tons of gold, the highest figure ever recorded for the first half of a year, according to World Gold Council data.
Though purchases slowed in the second quarter of 2024, they remained above the five-year average. This persistent demand from central banks, coupled with market anxieties, suggests that gold’s price is likely to remain robust in the coming year.
2024-12-01 17:42:00
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## Gold’s Meteoric rise: Experts Weigh in on Geopolitical Tensions and the Future of the Precious Metal
**Dubai, UAE** – Gold prices have plunged past the $2,660 mark, marking a sustained rally fueled by a confluence of factors – a weakening dollar and surging geopolitical uncertainties. This has propelled investors towards the perceived safety of the precious metal. This climb comes despite an initial dip following the nomination of Scott Bescent to head the US Treasury Department, which briefly calmed market anxieties. However, the fragile ceasefire between israel and Lebanon, coupled with concerns about potential trade wars under the incoming Trump management, have reignited fears, pushing gold prices upwards.
To unpack this complex financial landscape and delve deeper into the forces driving gold’s rise, we sat down with two leading experts: **Dr. Elena Ramirez**, Chief Economist at the Gold Investment Institute, and **Mr. James Carter**,Senior Portfolio Manager at Blackwood Asset Management.
**Geopolitical Jitters Fueling the Rally**
**World Today News:** Dr. Ramirez, we’ve seen gold prices surge despite an initial dip after the Bescent nomination. What’s driving this persistent upward trajectory?
**Dr. Ramirez:** The initial dip was indeed brief. the market is reacting to broader geopolitical concerns – the Israeli-Lebanese conflict, the potential for trade wars, and the general uncertainty surrounding the Trump administration’s economic policies.
**world Today News:** Mr. Carter, how meaningful is the role of geopolitical tensions in influencing gold prices?
**Mr.Carter:** Geopolitical events can have a profound impact on gold. When investors perceive increased risk or instability, they often flock to safe-haven assets like gold, driving demand and prices upward.
**”trump’s Return to the White House”**
**World Today News:** Dr. Ramirez, financial analysts have mentioned the potential for increased trade tensions under the Trump administration. Can you elaborate on this concern?
**Dr. Ramirez:** Trump’s protectionist stance and history of imposing tariffs raise concerns about escalating trade wars. This uncertainty can damage
global trade and weaken currencies, perhaps leading to a flight to safe-haven assets like gold.
**World Today News:** Mr. Carter, how concrete is the threat of these trade wars? What practical implications could they have for investors?
**Mr.Carter:** the threat is real and cannot be dismissed. Trade wars can disrupt supply chains, increase costs for businesses, and ultimately impact economic growth. In such a scenario, gold could become an even more attractive hedge against volatility.
**The Central Bank Factor**
**World Today News:** Dr. Ramirez, central banks have emerged as significant players in the gold market. What’s driving this increased interest?
**Dr. ramirez:** Central banks are increasingly diversifying their foreign reserves, and gold is seen as a stable and reliable asset in times of economic uncertainty.
**World Today News:** Mr. Carter, can this trend continue? What are your predictions for gold prices in 2025?
**Mr. Carter:** I believe central bank buying will likely continue, supporting gold prices.
Three leading financial institutions – Goldman Sachs, Citibank, and Bank of America – have predicted gold prices to reach $3,150, $3,000, and $3,113 per ounce respectively by the end of 2025.
**Navigating the Future of Gold**
As we move into 2025, the interplay between geopolitical uncertainties, potential trade wars, and central bank activity will likely exert a significant influence on the price of gold. Investors are urged to stay informed,diversify their portfolios,and consider assets like gold as a potential hedge against future economic turmoil.
**What are your thoughts on the future of gold? Share your insights and questions in the comments below!**
**For further reading, check out our articles on:**
* The impact of central bank decisions on gold prices.
* Past trends in gold price fluctuations.
* Strategies for investing in gold during periods of economic uncertainty.
