Gold: steady year-end

Previous Holiday week was relatively stable on financial markets, so the price of gold was moving within a relatively short range. The last reading week in a year is traditionally the calm one, so it could be expected that the price of gold will continue to move steadily till the end of this year. The price of gold started the week modestly below the $2,6K and modestly moved to the higher grounds, till the highest weekly level at $2.630.

The RSI continuously moved around the level of 45, without an indication that the market is ready to start its way toward the overbought market side. Moving averages of 50 and 200 days are modestly converging toward each other, however, there is still distance between two lines, in which sense, the potential cross is still not in store.

During 2024 the price of gold was mostly impacted by geopolitical uncertainties. Its negative correlation with the US Dollar was lost from time to time, impacted by increased investors demand for safe-haven assets. Whether this trend will continue also in 2025 is unclear at the moment, because it will depend on further course of geopolitical developments. Also, it should be considered that the highest demand for gold in 2024 came from China. As analysts noted, demand came not only from Central banks, but also from retail investors, mostly residents of China. Certainly, for centuries gold was treated as safe-haven assets, and this is something that will not change in 2025.