FX.co ★ Gold poised for new heights with Trump in office

Golden times are ahead for the yellow metal, according to analysts at Goldman Sachs. They predict that under Donald Trump’s presidency, gold could skyrocket to $3,000 per ounce by the end of 2025.

Experts believe that the primary driver for this surge will be large-scale purchases from central banks, coupled with potential interest rate cuts by the US Federal Reserve, which are expected to provide further support for the precious metal.

Goldman Sachs forecasts that gold could reach $3,000 per ounce by the end of next year, with President Trump's policies serving as a main driving force behind the rally. They argue that escalating trade tensions could add to gold’s strength.

However, gold has experienced some volatility recently. After Trump’s election victory, gold prices fell to $2,550 per ounce, losing 7% in the first five days. Analysts attribute this pullback to a stronger dollar and expectations that the newly elected US president’s policies could lead to a resolution of current geopolitical conflicts. Earlier, ahead of the US presidential election, gold was steadily rising, consistently hitting new record highs. But then things changed. Many investors shifted from safe-haven assets, including gold, to higher-yielding instruments.

Nevertheless, with rising geopolitical tensions, gold has reversed its trend and is now on the rise again. The price of the precious metal has recently reached the $2,600 mark, with market participants closely monitoring the situation in order to react quickly to any developments.