Amid Geopolitical Uncertainty
Gold prices have risen to $3,337.99 per ounce in spot markets, with U.S. gold futures reaching $3,359.20. This uptick is attributed to investor concerns over the finalization of the U.S.-China trade agreement and anticipation of key U.S. inflation data. Despite a framework agreement to resume the trade truce and eliminate China's rare earth export restrictions, markets remain cautious until formal approvals are secured from Presidents Trump and Xi
The European Central Bank reports that gold has overtaken the euro as the world's second-largest reserve asset, now comprising 20% of global central bank reserves compared to the euro's 16%. This shift is driven by record central bank purchases and a 30% price increase in 2024, with significant acquisitions by India, China, Turkey, and Poland
Analysts predict that gold prices could reach $3,600 per ounce by year-end, contingent on sustained demand and geopolitical developments . Goldman Sachs has raised its year-end forecast to $3,700 per ounce, with a high-risk scenario projecting prices up to $4,500, driven by central bank demand and investor interest in gold ETFs
In India, gold prices have climbed to ₹97,200 per 10 grams, influenced by global market trends and domestic demand. This increase reflects investor caution amid ongoing U.S.-China trade uncertainties and upcoming U.S. inflation data
Overall, the gold market is experiencing heightened activity due to geopolitical tensions, central bank strategies, and investor behavior, indicating a potentially bullish trend in the near term.