The week of 24 February to 2 March 2025 witnessed significant movements in the gold market, influenced by geopolitical tensions, currency fluctuations, and investor sentiment.
Gold Price Performance
At the start of the week, gold prices hovered near record highs, with spot gold trading around $2,939.91 per ounce on Monday, 24 February. This surge was attributed to a weaker U.S. dollar and ongoing trade uncertainties. However, as the week progressed, gold experienced fluctuations:
• Tuesday, 25 February: Prices dipped slightly to $2,915.12 per ounce, reflecting a 1.22% decrease from the previous day.
• Wednesday, 26 February: A modest rebound occurred, with prices rising to $2,916.19 per ounce, marking a 0.04% increase.
• Thursday, 27 February: Gold reached an all-time high of $2,954.69 per ounce, driven by a combination of factors including a weaker dollar and heightened geopolitical tensions.
• Friday, 28 February: The metal saw a slight correction, closing at $2,848.50 per ounce, down 1.64% from the previous day.
By the end of the week, gold prices stabilized, reflecting the market’s response to evolving economic indicators and geopolitical developments.
Factors Influencing Gold Prices
Several key factors contributed to the week’s gold price movements:
1. Geopolitical Tensions: President Donald Trump’s acknowledgment of Russia’s invasion of Ukraine and the announcement of an impending minerals agreement between the U.S. and Kyiv heightened geopolitical uncertainties, bolstering gold’s appeal as a safe-haven asset.
2. Currency Fluctuations: A weaker U.S. dollar made gold more attractive to investors holding other currencies, supporting higher gold prices.
3. Trade Policies: The Trump administration’s threats of fresh tariffs, including on lumber and forest products, added to market uncertainties, prompting investors to seek refuge in gold.
Market Outlook
Analysts remain optimistic about gold’s trajectory. Some forecasts suggest that prices could reach $3,500 per ounce if investment demand increases by 10%. However, the market remains sensitive to geopolitical developments, currency movements, and central bank policies. Investors are advised to monitor these factors closely when making investment.
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