Gold (XAU) has had a speculative price ascent this season. The precious yellow metal is currently up at $2,341, rallying years after its earlier bull run of 2019. With the central bank surge amping up gold prices, experts believe that the XAU rally will kickstart again. The predicted timeline for this rally is set to begin at the end of 2024 and continue until 2025.
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Gold to Continue Moving Ahead
The precious yellow metal, which has been rallying hard for the past couple of months, will continue its remarkable price ascent until 2025. As per the analysis presented by Xu Le, lecturer at the Department of Strategy and Policy at the National University of Singapore (NUS) Business School, she shared how Gold will resume its upward trajectory by the end of 2024, which will continue till next year.
Outlining her reasoning for the meteoric rise of gold, Le pointed out how the change in the geopolitical narrative further bolstered gold prices. At the same time, the global bank XAU surge and obsession with hoarding gold are also playing a pivotal role in driving this narrative ahead.
“Many investors believe that gold, as a versatile precious metal, traditionally shows an inverse correlation with federal rates,” she said. “Given its denomination in dollars, when interest rates climb and the U.S. dollar strengthens, gold prices generally decline. However, this relationship has appeared to be less predictable recently. Over the past few years, despite high federal rates and a stable U.S. dollar. Gold prices have not only held firm but have soared to new heights.”
With the concept of de-dollarization gaining strength each day, Le shared that investor sentiment is now looking forward to protecting their wealth against unprecedented economic attacks, pivoting them towards gold.
“Gold steps into the spotlight, offering investors a sanctuary to shield their wealth amid economic uncertainty and escalating inflationary pressures.”
Furthermore, a gradual slowdown in fed rate spikes, coupled with global economic uncertainty, is also helping gold prices to catapult to new highs. With China recently dumping billions of US dollar bonds in Q1, the multipolar currency narrative is also gaining strength. At the same time, efforts to derail the US Dollar and the nation’s ability to weaponize the USD are also encouraging investors to hold gold to combat the rising economic pressure.
“Moreover, the trend of de-dollarization has been gaining momentum. With many countries actively diversifying their currency reserves by accumulating gold and alternative currencies.”
XAU Will Continue To Rally Until 2025
Xu Le, elaborating on gold’s rising allure, shared how the precious yellow metal price rally will continue till the year 2025. Gold prices may note a significant price spike by the end of 2024, which will continue until 2025.
“With its nature as a safe haven, gold is expected to sustain its influence, pushing its price higher in the latter half of 2024 and in 2025.”
Gold’s stellar price rise has been the trending debate of the current season. As of now, the price of XAU seems to be consolidating, portraying a reluctant to-and-fro phase.
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Per Rashad Hajiyev, a notable finance analyst, XAU is currently mimicking its 2019 bullish rally phase. If all goes well, the current trajectory and momentum can push gold to breach past the $2500 price threshold.
“Gold monthly chart. Gold broke out in June of 2019, just like in March 2024. April and May 2024 monthly charts are pretty similar to June and July 2019. If history repeats itself, then in July 2024, gold could push above $2,500.”