Gold: Short-Term Fluctuations, Long-Term Triumphs

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As a market analyst, I observe that global gold prices currently stand at $2,647 per ounce, with February 2025 gold futures on the Comex New York exchange priced at $2,675 per ounce, reflecting a 0.03% increase from the previous day. Over the past week, gold has shown a solid 0.8% gain.

From my perspective, gold has had a remarkable year, and while it is now undergoing a phase of correction, I firmly believe this pullback will not last long. My analysis suggests that gold prices will rise further in the coming months. This outlook is supported by several key factors, including loose monetary policies, strong central bank buying activity, and growing demand for safe-haven assets, all of which are likely to drive gold to new record highs this year.

I’m also closely following comments from Federal Reserve Chair Jerome Powell after each meeting, as these are crucial for shaping investor expectations for 2025. Inflation remains a pressing issue, still falling short of the Fed’s 2% target. According to Nicky Shiels, a metals strategist at MKS PAMP SA, gold prices could reach $2,500 per ounce, or even as high as $3,000 per ounce, depending on how effectively the Fed manages inflation.

In the short term, my projection is that gold will trade within a range of $2,647 to $2,760 per ounce. For the longer term, I align with Goldman Sachs' forecast that gold could achieve $3,000 per ounce by the end of 2025. This aligns with the broader trends I’m observing, where persistent economic uncertainties and evolving monetary policies continue to shape a favorable environment for gold.
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