Summary:
Gold steadied below $3,000 after last week’s record high. Goldman Sachs sees upside risk to its $3,100 year-end forecast.
Gold steadied below $3,000 on Monday after hitting a fresh record high last week. Goldman Sachs said in a note there was upside risk to its $3,100 end-2025 base case scenario.
Traditionally viewed as a safe store of value during geopolitical turmoil, bullion has risen around 14% so far this year, driven in part by concerns over the impact of Trump's tariffs and a selloff in stock markets.
The metal has also been supported by central bank demand, with the PBOC building its bullion reserves for a fourth straight month in February. Trump has ramped up tariffs on imports of Chinse goods.
The European Commission said that it will impose counter tariffs on €26 billion worth of US goods from next month, marking a flare-up in global trade war.
Trump is expected to speak with Putin this week on ways to end the three-year war in Ukraine, US envoy Steve Witkoff told CNN on Sunday after returning from what he described as a "positive" meeting in Moscow.
Kremlin set out tough conditions for the potential truce. A license allowing US energy transactions with Russian financial institutions expired last week, according to the Trump administration.
Bullion was facing strong resistance at the psychological level, so we see consolidation in the short term. A push below $2,980 could expose $2,960.
Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
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