Gold prices have been rising recently due to uncertainties around the upcoming US elections and global political tensions. Experts from HSBC believe that gold prices will continue to rise in the short term, possibly extending into 2025. However, there may be challenges if the US dollar and interest rates remain strong.
Gold Prices Likely to Stay Above $2,200 Per Ounce
According to HSBC analysts, gold has entered a new era where prices will likely stay above $2,200 per ounce. This is driven by several factors, such as economic uncertainty, political risks, and the demand for gold as a “safe haven” investment. Additionally, rising government debt and global monetary policies have increased interest in gold.
Gold Price Rise May Slow Down by 2025
While gold prices are expected to remain high for now, experts think the increase may slow down by 2025. As prices go up, fewer people are buying gold jewelry, coins, and bars. This drop in demand could cause prices to stabilize or slightly decrease by the end of 2025.
Higher Gold Supply May Impact Prices
Gold production is expected to grow in the next year, with mining being the largest source of new supply. The high prices are also encouraging people to recycle scrap gold, adding more gold to the market. Gold exchange-traded funds (ETFs) are selling off some of their holdings, and central banks might reduce their demand for gold due to the high prices. These factors could make it harder for gold prices to keep rising.
In summary, while the demand for gold remains strong due to global uncertainty, increased supply and less demand for gold jewelry and bars may impact prices in the future.
For regular updates and analysis on gold prices, check out Daily Gold Signals. Visit our Daily Gold Update section for the latest trends and insights.
