Summa Silver Corp. (TSXV: SSVR, OTC: SSVRF, FRA: 48X)
Silver Lives Here
Over the past few months, the price of gold has hit record highs several times. And according to analysts and retail investors, the upward trend of the precious metal is not going to change in the short term, with $3,000 per ounce being the next target.
Joseph Cavatoni, market strategist at the World Gold Council, said that growing government debt burdens and a dramatically changing geopolitical landscape suggest that central banks will continue to buy gold in 2025, with the possibility of another 1,000-tonne-plus net purchase. The World Gold Council believes that gold demand will remain high in 2025, even if gold prices remain at historic highs.
As of 1:43 p.m. ET, the price of the Nymex April gold futures contract was at $2,884.70 an ounce, up nearly 2 per cent from previous week.
Alex Kuptsikevich, chief market analyst at FxPro, said that gold’s rally is just beginning and that the journey to $3,000 is just the start. He noted that the gold market resumed steady buying since December last year. In late January, the price of gold broke through $2,800, sparking discussions about the possible start of a new round of global economic growth. If this trend continues, gold prices are likely to reach the $3,400 per ounce range between August and October this year.
Jesse Colombo, an independent precious metals analyst and founder of the BubbleBubble Report, said this week that the recent rally shows gold still has a lot of potential. If gold fails to close above $2,900 for the time being, in a worst-case scenario, it will trade sideways in the $2,800 to $2,900 range for another week or so before surging higher again.
Ole Hansen, Head of Commodity Strategy at Saxo Bank, believes that gold now looks like all roads lead to Rome ($3,000), and for the time being, momentum and general uncertainty are likely to continue to support and underpin the price.
At its first monetary policy meeting of the year last month, the Federal Reserve said it was in no hurry to cut interest rates as the threat of inflation remains high and the labour market remains healthy.
Naeem Aslam, chief investment officer at Zaye Capital Markets, expects gold prices to continue to rally as inflation concerns continue to rise. Apart from that, Trump’s tariff threats are still pending as many believe that one month is not enough to reach any solution. Thus, for now, the strong momentum is likely to continue to push gold prices higher.
Over the next week, the market will be watching closely to see if Federal Reserve Chairman Jerome Powell provides clues on monetary policy during his congressional testimony, and Lukman Otunuga, manager of market analytics at FXTM, said that gold investors should be prepared for a number of volatilities next week, including how Trump responds to China’s retaliatory tariffs, Powell’s testimony, and the latest U.S. inflation report that could affect gold’s outlook.
While fears of a trade war between the U.S. and China and bets on lower U.S. interest rates could push gold to new all-time highs, easing concerns over Trump’s tariff threats and Powell’s hawkishness could trigger a pullback in gold prices.
