Gold hits new record — Next stop: $4000!Gold has soared above $3,300 per ounce, setting a new all-time high. Since the beginning of the year, XAUUSD has gained over 20% , and analysts are warning: this may just be the beginning of a rally toward $4,000. As geopolitical tensions flare, supply chains for critical minerals falter, and traditional risk assets crumble, the spotlight is back on gold as the ultimate safe haven.
FreshForex analysts have been forecasting this surge since November 2023. We believe gold will remain a strong investment, supported by a range of powerful factors:
Trade war escalation: Donald Trump has signed executive orders targeting the reduction of U.S. reliance on imported strategic minerals like uranium, cobalt, and rare earths — the market reacted instantly. Conflicts, wars, sanctions, and international tension typically drive investors to seek refuge in gold.
Fed at a crossroads: The probability of a rate cut in May is 92.3% (CME data). Lower interest rates reduce returns on traditional fixed-income instruments like bonds, making gold a more appealing option for investors.
Central banks are stockpiling gold: In Q1 2025, global gold purchases surged 41% compared to 2024. Gold ETFs are holding a record $345.5 billion. Many countries are ramping up gold reserves to diversify away from the U.S. dollar, fueling further demand for physical gold.
Inflation and structural debt crisis in the U.S.: The University of Michigan forecasts consumer inflation at 6.7% — the highest since 1981. Rising yields, budget deficits, and political instability are accelerating capital flight from the dollar.
Goldman Sachs analysts (#GoldmanSac) have once again raised their gold forecast. The investment bank expects gold to reach $3,700 per ounce by the end of this year and $4,000 by mid-2026. Meanwhile, FreshForex believes the $4,000 mark could be tested as early as this year!
