Media OutReach Newswire

2024-12-05 09:00

Gold's road to $3,000: expert analysis by global broker Octa

KUALA LUMPUR, MALAYSIA - Media OutReach Newswire - 5 December 2024 - Gold has been valued for its stability when the financial fires are raging. That stable nature was underscored in 2024 when its price shot upward, gaining over $700 per ounce. This amounted to a 34% increase since January. The vibrant price increase has gotten traders and investors all jazzed up again about gold, with the most pressing question among them being: could gold exceed the $3,000 price point by 2025? Kar Yong Ang, a financial market analyst at Octa broker, delves into the topic.

Octa

Inflation, interest rates, and geopolitics
Inflation and interest rates influence gold prices. When inflation soars, investors tend to buy gold to protect their purchasing power. They view it as a much safer investment than stocks or bonds because stocks are prone to sudden price drops, and bonds can lose value when interest rates rise due to high inflation. Historically, though, when real interest rates (which are inflation-adjusted) have declined, gold has just soared. As some would say, 'There is no better buy'.

By 2024, the percentage of overall reserves held in gold by central banks had reached 10%, a significant climb from the 3% level recorded just 10 years earlier. Although we are still in an era where most reserve currencies are fiat (for example, paper with little intrinsic value), an increasing number of central banks seem to believe that holding gold adds an element of prudence to their reserve diversification strategy. Emerging economies, especially in Asia, are seeing their central banks take on an increasingly important role in the gold market. China (which now holds 5% of its reserves in gold), along with India, has emerged as one of the preeminent buyers of gold.

Moreover, the central banks of the emerging economies have, since 2022, stepped up their pace of gold buying. The catalyst for this last development was the unprecedented freezing of Russian assets, which prompted multiple nations to reconsider the makeup of their reserves.

Octa

Furthermore, the global shift towards a more sustainable economy, including investment in renewable energy and green technologies, is driving limited demand for certain commodities, such as precious metals that include gold. Gold plays an important role in clean energy technologies, including solar panels and electronics for energy-efficient systems. This increased demand for technological gold is exacerbated by growing concerns about the lack of resources necessary for the green transition.

Moreover, geopolitical tensions and economic uncertainty further underscore the attractiveness of gold as a safe asset, attracting investors seeking relief amid rapid changes in global markets. The Ukraine conflict, strained US-China relations, and unrest in the Middle East have sent investors scurrying to safe-haven assets. And when it comes to safe havens, gold is a time-tested destination. Its record of price stability in an unstable world at present stands in stark contrast to the behaviour of the stock market and other assets. An instance of this is China's recent accumulation of gold, which now makes up 5% of its foreign exchange reserves. This is yet another sign of a shift towards resilience in a global economy fraught with uncertainty.

Technical analysis: key levels to watch
According to the technical analysis, the asset's price is still in the uptrend, even on a high timeframe. The long-term bullish trend also hasn't changed for a bearish one. The $3,000 target, which aligns with the 4.236 Fibonacci extension level, is pretty real. However, this level may be too ambitious for the moment of publication.

Octa

Prospects for 2025 – factors shaping gold's future

According to the Chief Economists' Survey from the World Economic Forum, economists are uncertain about global economic stability. 54% of respondents forecast a steady outlook and 37% project further deterioration. Future fiscal policies targeting climate adaptation, a shifting demographic landscape, and ramped-up defence spending are set to push inflation upwards. All these look to gold as an inflation hedge​; however, it's not just private investors: central banks are in on the gold thing, too. They are expected to keep topping up their gold reserves and, in the face of all these other demands, are likely to maintain long-term demand.

So will gold hit the $3,000-per-ounce price in 2025? The scenario seems very possible. However, for the asset's price to reach a rather ambitious target, favourable market conditions are required. They include both macroeconomic and geopolitical factors. For example, the re-election of Donald Trump introduces additional variables into the equation. Trump's geopolitical stance, particularly regarding global trade and conflict resolution, could influence investor sentiment and safe-haven demand. If his promises regarding the resolution of numerous conflicts are fulfilled, investors may partially abandon safe-haven assets for the riskier ones.
Hashtag: #Octa

發佈者對本公告的內容承擔全部責任

Octa

is an international broker that has been providing online trading services worldwide since 2011. It offers commission-free access to financial markets and various services used by clients from 180 countries who have opened more than 52 million trading accounts. To help its clients reach their investment goals, Octa offers free educational webinars, articles, and analytical tools.

The company is involved in a comprehensive network of charitable and humanitarian initiatives, including the improvement of educational infrastructure and short-notice relief projects supporting local communities.

In the APAC region, Octa received the ‘Best Trading Platform Malaysia 2024’ and the ‘Most Reliable Broker Asia 2023’ awards from Brands and Business Magazine and International Global Forex Awards, respectively.

source: Octa

《說說心理話》成人亦會專注力不足?嘉賓分享中年確診過度活躍症+自閉症過程!► 即睇

人氣文章
最近7天
1
港股 | 蕭猷華:內地AI發展迅速,阿里巴巴股價看俏
2
PapaHome淘寶家具實體店22日開幕,選址尖沙咀中港城,料創100個就業機會
3
高息定存 | 華僑銀行推新春港元定存優惠,88天或188天享3.68厘
4
財政預算案2025 | 重點文字直播/Youtube直播(稍後送上懶人包)
5
高息定存 | 一周高息合集,蛇年定存金蛇起舞,1個月定存高達8厘
6
高息定存 | 一周高息合集,3個月5厘之選有邊間?6個月最高3.55厘
7
啟德體育園明天足球賽測試,4.4萬公僕參與涉逾400萬車馬費
8
環球央行 | 歐洲央行宣布再次減息0.25厘,符合市場預期
9
高息定存 | 一周高息合集,減息預期降溫,銀行3個月最高5.68厘,6個月3.55厘
10
專訪 | 關稅戰 | 香港物流協會副會長梁庭彰:美物流商停收包裹對跨境電商打擊重大
11
易經看世界 | 乙巳蛇年趨吉五招:言行注意甚麼?應遠離甚麼人?(有片)
12
港股 | 午市前瞻 | iPhone SE難救中國市場 專家提醒比電已超買
13
【FOCUS】悟空、哪吒、DeepSeek,如何啟示香港
14
大S | 台灣藝人徐熙媛因流感併發肺炎逝世,享年48歲
15
收市短打 | 楊韻銳:港股升勢有成交配合 惟留意關鍵阻力位!
16
日入而息 | 習近平據報下周見科企領袖,證監會審視8券商孖展風控,大酒店轉蝕9億
17
高息定存 | 信銀國際12個月港元定存高達3.5厘
18
彭博亞洲20大富裕家族,香港5大家族上榜,新地郭氏排名最高,無李嘉誠李兆基?
19
港股 | 午市前瞻 | AI應用概念炒作有錢途 下階段部署邊隻好?
20
民營企業座談會 | 習近平在京出席民營企業座談會
21
David Webb:因病情惡化,將有序結束個人財經網站
22
AI | 追捧DeepSeek,全球對沖基金棄印度投中國
23
AI | 蔡崇信確認阿里與蘋果合作,撰文談DeepSeek崛起帶來兩大啟示
24
神州經脈 | 習近平:經濟政策不會變,民企大顯身手正當其時
25
譚仔 | 譚仔國際日資大股東溢價76%建議私有化今復牌,上市不足三年半
26
港股 | 蕭猷華:恒指升勢可持續?
27
美股收盤 | 美股三大指數收市報跌,道指跌近750點
28
比特幣 | 亞洲時段虛擬貨幣大幅下跌,31萬人爆倉
29
神州經脈 | 中國減持美債,螞蟻入局具身智能,70城樓價向好
30
隱瞞「賣殼」欺詐罪成,詹培忠判囚34個月,詹劍崙囚37個月
專業版
HV2
精裝版
SV2
串流版
IQ 登入
強化版
TQ
強化版
MQ

etnet榮膺「第九屆傳媒轉型大獎」四大獎項

【限時優惠$68/月】申請etnet強化版MQ手機串流報價服務 捕捉板塊輪動,提高獲利勝算

etnet榮獲HKEX Awards 2023 「最佳證券數據供應商」大獎

大國博弈

2025-26年度財政預算案

貨幣攻略

說說心理話

Watch Trends 2024

北上食買玩

Art Month 2024

理財秘笈

流感高峰期

山今養生智慧

輕鬆護老