
Gold Prices Surge with Strong Outlook (Mar 18, 2025)
created At: 3/18/2025

Neutral
This analysis was written from a neutral perspective. We advise you to always make careful and well-informed investment decisions.
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Fact
Gold price outlook: BofA, Citi, and Macquarie forecast further gains ($3,000 surpassed, $3,500 target).
ETF inflows rise: Gold ETFs shift to net buying in 2024, with February inflows at a 4-year high.
Stock market risks: Equities crash could trigger temporary gold corrections, but long-term bullish outlook remains.
Real interest rates & gold: Despite higher rates, fiscal deficits and sovereign credit risks are driving gold demand.
Central bank buying: 18 tons added in January; China's holdings reach 73.61 million ounces; Goldman Sachs sees $3,100 by year-end.
Opinion
Gold’s rally is fueled by central bank purchases, economic uncertainty, and a flight to safe-haven assets. With China and global central banks leading the buying spree, further price increases are likely if retail investors enter the market. However, short-term corrections may occur if a stock market crash forces liquidity-driven selling, similar to 2008 and 2020. While real interest rates are rising, fiscal deficits and sovereign credit risks are structurally supporting gold demand, making a long-term bullish case for the metal.
Core Sell Point
Central bank purchases, economic instability, and strong safe-haven demand are driving gold’s rally. Short-term volatility remains a risk, but the long-term bull market is likely to continue.
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