Gold (XAU/USD) is expected to end 2024 on a positive note, posting a 27% annual gain, its best performance since 2010. The precious metal began the year at $2,062 per ounce, reaching a yearly high of $2,788 at the end of October, an increase of 35.20%, before stabilizing at $2,626 per ounce.
Although recent months have seen a slight pullback, investors view this as simply a pause in an otherwise strong rally. As the year draws to a close, all attention turns to 2025, with speculation growing about gold’s trajectory in the first quarter.
ChatGPT Gold Price Forecast for Q1 2025
To provide a clearer perspective, Finbold consulted ChatGPT-4o, which projects that gold prices could be in a range of $2,600 to $2,750 by the end of the first quarter of 2025. This model of artificial intelligence highlights a confluence of factors that will influence the value of the yellow metal in the months to come.
ChatGPT also noted that the Federal Reserve’s cautious approach to rate cuts could pose a headwind for gold, with higher interest rates diminishing the appeal of non-performing assets.
Separately, robust labor market data and persistent inflation reinforce the Fed’s tight stance, which has weighed on gold prices in late 2024.
Despite these monetary policy challenges, geopolitical tensions continue to fuel gold’s appeal as a safe haven. ChatGPT identified conflicts in Ukraine and the Middle East as significant drivers of demand. However, many of these risks appear to already be priced in, limiting their immediate impact.
Additionally, a potential return of Donald Trump to the White House could reignite global trade tensions, with tariffs and policy changes likely to increase economic uncertainty. Central bank purchases also played a major role in gold’s surge in 2024, a trend ChatGPT expects to continue into 2025.
As US Treasury yields fall, with 2-year and 10-year yields at 4.24% and 4.58% respectively, the yellow metal could benefit from additional support, strengthening its appeal in a global context uncertain.
A goal of $3,000 in 2025?
Although ChatGPT offers a cautious forecast for the first quarter, industry experts appear more optimistic about gold’s long-term outlook. The raw materials strategist Bloomberg IntelligenceMike McGlone, suggested that geopolitical tensions could push gold prices to $3,000 in 2025.
This forecast, according to Finbold, is in line with the surge in demand for safe-haven assets in an uncertain global environment.
Similarly, Goldman Sachs (NYSE: GS) also set a $3,000 price target for gold, citing U.S. fiscal instability, increased geopolitical risks, and strong central bank demand as factors. keys. According to Goldman Sachs, these dynamics could propel gold to new highs in the coming year.
As markets grapple with a volatile mix of fiscal instability and geopolitical uncertainties, gold’s role as a safe haven asset remains firmly entrenched. Investors are likely to closely monitor the events of the first quarter as an indicator of the possibility that 2025 sets the stage for new milestones for gold.
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The dynamics of the gold market are interesting to follow, particularly in times of economic uncertainty and international tensions. It would be relevant to consider how these elements interact and influence investment choices in the months and years to come. What does the future really hold for this traditional asset as a safe haven?
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