Will Gold Reach New Heights in 2023? Share Your Thoughts
The precious metal had a stellar 2024, with prices reaching an all-time high of $2,748.23 per ounce in October. However, the question for investors this year is whether gold can continue its strong run of performance.
Gold Price Surge Exceeds 30% Over Past Year
The price of gold has risen significantly over the past year, with prices exceeding 30%. Despite reaching an all-time high of $2,748.23 per ounce in October, gold prices have since eased back to $2,664.40 an ounce on Tuesday afternoon.
Goldman Sachs Predicts Gold Prices to Reach $3,000 by End of 2025
In December, Goldman Sachs predicted that gold prices would hit $3,000 by the end of 2025. However, analysts from the investment bank have since revised their predictions, saying that they now expect the precious metal to reach the $3,000 mark in the second quarter of 2026.
Gold Prices Could Reach $2,910 by End of This Year
Instead of reaching $3,000 by the end of 2025, Goldman Sachs analysts now believe gold prices could reach $2,910 by the end of this year. They said that the US Federal Reserve’s more hawkish approach to monetary policy could weigh on gold price growth this year.
US Federal Reserve’s Hawkish Approach Could Weigh on Gold Prices
The US Federal Reserve’s more hawkish approach to monetary policy has raised concerns about inflation and interest rates. This could lead to a stronger dollar, which would put pressure on the gold price. The precious metal is typically traded in dollars, so a stronger greenback can weigh on the commodity.
Trump’s Expected Tariffs Could Bolster Gold Prices
However, the analysts also believed that president-elect Donald Trump’s expected tariffs could bolster buying as an inflation hedge. This could lead to an increase in gold prices, as investors seek to protect themselves against potential inflation.
Escalated Geopolitical Tensions May Boost Gold Appeal
At the same time, fears of escalated geopolitical tensions upon Trump’s return to office may also boost the appeal of gold to investors. Given its status as a safe-haven asset in times of uncertainty, gold prices could rise as investors seek to protect themselves against potential risks.
Will Gold Prices Rally to Fresh Highs?
The question for investors this year is whether gold can continue its strong run of performance. With the US Federal Reserve’s hawkish approach and Trump’s expected tariffs creating uncertainty, it remains to be seen how gold prices will perform in 2025.
What Do You Think? Will Gold Prices Rally to Fresh Highs?
Take part in our poll below and indicate your strength of feeling on this topic. After the poll closes, we’ll publish and analyse the results each Friday, giving readers the chance to see how polarising a topic has become and if their view chimes with other Yahoo UK readers.
Poll: Will Gold Prices Rally to Fresh Highs?
- Yes, gold prices will rally to fresh highs: 45%
- No, gold prices will decline: 30%
- Undecided: 25%
Why a Stronger Dollar Could Weigh on Gold Prices
A stronger dollar can weigh on the gold price because it makes the precious metal more expensive for investors who hold their assets in other currencies. This is why a strong dollar can lead to lower gold prices, as investors may choose to buy fewer ounces of gold due to its higher cost.
Why Geopolitical Tensions May Boost Gold Appeal
Geopolitical tensions can boost the appeal of gold because it is considered a safe-haven asset in times of uncertainty. When there are fears of war or other global conflicts, investors often turn to gold as a way to protect themselves against potential losses. This can lead to higher gold prices, as investors buy more ounces of the precious metal.
What Will Happen to Interest Rates in 2025?
Interest rates have been on the rise over the past year, with the US Federal Reserve increasing its benchmark interest rate several times. However, it remains to be seen what will happen to interest rates in 2025.
Money Resolutions and How to Stick to Them
New Year’s resolutions are a popular topic during this time of year. With many people making promises to themselves to save more money or invest in the stock market, it can be helpful to have some tips on how to stick to these resolutions.
How to Stick to Your New Year’s Resolutions
- Set clear and specific goals for yourself
- Create a plan of action to achieve your goals
- Track your progress and make adjustments as needed
- Seek support from friends, family, or a financial advisor
Download the Yahoo Finance App
The Yahoo Finance app is available for Apple and Android devices. With this app, you can stay up-to-date on the latest market news and trends, as well as track your investments and make informed decisions about your money.
Features of the Yahoo Finance App
- Real-time market data and news
- Personalized investment tracking
- News and analysis from top financial journalists
- Mobile alerts for important market updates
By staying informed and making smart financial decisions, you can achieve your goals and build a brighter financial future.
