
Cassiar Gold Corp. (TSXV: GLDC, OTCQX: CGLCF)
Revitalizing the Cassiar Gold District in British Columbia, Canada
After experiencing its best annual increase in 14 years, gold has started 2025 on a relatively calm note, stabilizing at high levels above $2,600 per ounce.
During a two-week holiday period, gold trading remained within a narrow range. However, as the market fully resumes activity on Monday, analysts note that gold still faces significant resistance.
Strong economic data has bolstered the dollar, pushing its value against a basket of currencies to a 25-month high.
David Morrison, a senior market analyst at Trade Nation, stated in a report on Friday (January 3) that the bullish momentum for gold and silver is gradually strengthening. However, he continues to monitor the impact of the dollar on price movements next week. It will be interesting to observe whether gold and silver can rise during this period, even if the dollar is at a two-year high.
Although the dollar poses a challenge to gold, Alex Kuptsikevich, chief market analyst at FxPro, pointed out that gold and the dollar can sometimes rise in tandem. On December 31 and January 2, risk assets were under pressure, with the dollar increasing by 1.5% during this period, yet this did not prevent the strengthening of gold. Despite relatively subdued market volatility, the simultaneous rise of the dollar and gold during stock market downturns is characteristic of times when safe-haven assets are appreciating. However, there are some technical bearish warnings in gold’s price movements. An excessive number of sellers seem to be seeking profit-taking, which appears to be a bearish signal.
Some analysts and economists indicate that important employment data will come out next week, potentially setting the tone for the dollar and gold trends in the first quarter of 2025. While strong economic data is likely to further bolster the dollar, analysts emphasize that any weakness in gold should be viewed as a buying opportunity.
David Miller, chief investment officer and senior portfolio manager at Catalyst Funds, expressed optimism about gold’s trajectory in the new year. With gold trading above $2,600, there is ample reason to believe that its strength in 2024 will carry over into 2025.