GOLD: Can gold break the $3,000 barrier?

Gold has started 2025 with optimism, backed by its solid performance in 2024, a year in which it recorded a 27% increase, reaching record highs near $2,800 per ounce. This could be the year in which the precious metal surpasses $3,000, although this price extension could occur as a goal to be achieved until 2028. For this exercise, it would not be complicated to see the price evolution to the current historical maximum at $2,789.89.

Key Factors for Gold in 2025
Three main factors that boosted gold in 2024 are still present and strengthen its outlook for this year:
1. central bank purchases: central banks continue to increase their gold reserves, a strategic move to diversify and strengthen their balance sheets.
2. Monetary easing: With less restrictive monetary policies in several key economies, the environment is favorable for the metal.
3. Safe haven asset: Persistent volatility in global markets reinforces gold's appeal as a safe haven asset.
With an increase of 13% from current levels, gold could reach the coveted $3,000, consolidating its position as one of the most profitable assets in the market.

Gold's Resilience to Headwinds
Gold has shown remarkable resilience in the face of traditional headwinds, such as a strong dollar and rising real Treasury yields. This change in market dynamics suggests that the precious metal has strengthened its position as a hedge against negative inflation stemming from irresponsible fiscal and monetary policies.

Initial Outlook for 2025
Gold has started the year with a 0.7% appreciation in the first few days, driven by a generalized risk-averse sentiment in the markets. The record highs recorded in 2024 could signal a structural change in the precious metal's market dynamics.
Against this backdrop, gold continues to consolidate its position as an essential asset for investors seeking to combine protection and profitability in an economic environment marked by uncertainty.
The conditions seem to be in place for the precious metal to break the $3,000 barrier. Will 2025 be the year?
Ion Jauregui - ActivTrades Analyst






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