Gold futures have surged, breaking a streak of losses following the recent U.S. elections. Rising geopolitical tensions, alongside a weaker dollar and declining Treasury yields, have driven this price rebound.
Investors are also considering Goldman Sachs’ projections that gold could become a “Trump trade” refuge amid uncertainties surrounding the newly elected U.S. president’s administration.
December gold futures increased by 1.73%, reaching $2,614.6 per troy ounce on the New York Mercantile Exchange’s Comex division. This follows a 4.55% decline last week.
The market is closely watching the U.S. decision to allow Ukraine to use long-range missiles in its conflict with Russia. This geopolitical move has added to the uncertainty affecting gold prices.
Goldman Sachs has forecasted that gold prices could rise to $3,000 per troy ounce by the end of 2025, driven by uncertainties related to Trump’s presidency.
Central banks’ high demand and potential Federal Reserve interest rate cuts may further support gold prices, according to Daan Struyven, one of Goldman’s commodity research heads.
SP Angel suggests that ongoing geopolitical tensions between the Trump administration and China will sustain demand for gold.
However, TD Securities remains cautious, not yet seeing exhaustion in gold sales. They note that recent consolidation levels align with historical patterns following extreme macro fund positions.
The investment bank warns that commodity traders are vulnerable to triggering new sales, with their analysis indicating only modest algorithm-driven sales so far. TD Securities suggests that a drop below $2,550 could trigger large-scale algorithmic selling activity.
This article was produced by The Rio Times’ automated AI newsroom. Editorial responsibility: Matthias Camenzind, Publisher and Editor-in-Chief. The Rio Times also runs Ask Rio Times, which answers from 100,000+ of our own articles, the daily Latin America Power Map, and prediction-market odds on elections and markets.. How we use AI · Report an error
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