Gold Daily | Gold Prices Drop Amid Rising Yields, Long-term Demand Strong with $3,000 Target in 2025

【Latest Gold Price and Recent Trends】

Gold prices have recently dropped by 0.64% to $2,616.38 per ounce, reflecting concerns over rising U.S. Treasury yields. Despite this downturn, gold prices have increased by 28% this year, peaking at a record $2,790.15 on October 31, driven by Federal Reserve rate cuts and global tensions.

【Market Sentiment and Economic Background】

The recent rise in U.S. Treasury yields has reduced the appeal of non-interest-bearing gold, while a stronger U.S. dollar has further pressured gold prices. Investors are closely watching the potential impact of President-elect Donald Trump's return and his inflationary policies on the Federal Reserve's outlook for 2025. Despite short-term fluctuations, the long-term demand for gold remains robust, fueled by ongoing geopolitical tensions, central bank purchases, and concerns over sustained inflation. The Fed's cautious stance and limited rate cuts in 2025 have bolstered the dollar, generally negative for gold, yet market sentiment still supports gold as a hedge against economic and geopolitical uncertainties.

【Analyst Opinions】

Analyst James Hyerczyk suggests that short-term volatility may lead investors to buy gold on dips, while profit-taking could trigger significant sell-offs. In the medium term, there is a strategy favoring gradual accumulation of gold positions. Analyst Bob Haberkorn predicts that if central banks continue purchasing gold, prices could surpass $3,000 by summer. Julia Khandoshko highlights that rising U.S. monetary policy uncertainty may favor gold, expecting prices to exceed $3,000 due to a potentially dovish Fed stance. Overall, analysts remain optimistic about gold's prospects in 2025, driven by continued geopolitical risks and anticipated changes in U.S. policies under the Trump administration.