Gold’s spectacular price rally has taken the markets by utter surprise. The fact that it has emerged as the breakout asset of 2025 has led investors to flock toward the asset, with firms like Wells Fargo reinstating their opinion that the gold price rally has more to explore and bank on.
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Wells Fargo’s Expert Shares 3 Catalysts for Gold’s Luminous Rise
Per a recent Kitco article, gold is primed for further breakout, as predicted by Goldman Sachs and Morgan Stanley earlier. However, Wells Fargo’s head of Global Equities and Real Assets at Wells Fargo Investment Institute, Sameer Samana, believes gold’s future breakout relies heavily on 3 macroeconomic factors. In his latest update, Samana shared how falling rates and crypto, coupled with a weak USD scenario, may eventually help gold soar high, with the asset breaking new price ceilings.
Samana was quick to add how a multi-year gold rally is still on the cards, despite the asset currently projecting a slow, mellow stance.
“Nothing is damaged with respect to the uptrend,” he said. “Now, that doesn’t mean that you couldn’t have some further consolidation. It’s entirely possible that the Fed at the December meeting—we think they’ll cut—but it’s possible they’ll wait until January. But either way, they will be cutting.”
The rising Fed volatility, emphasizing the appointment of a new Fed chair, is also impacting the USD, with macro events leading the crypto domain to encounter violent price falls. All these factors are pushing investors towards gold, strengthening its outlook.
“In this world where there’s a lot of uncertainty, people are looking more and more for sources of diversification that maybe bonds used to provide,” he said. “It seems like gold is the key diversifier in a world where inflation remains perky and the Fed cuts rates with inflation at 3%.”
Gold Present Price Outlook
According to Rashad Hajiyev, gold has recently broken its 41-day triangle resistance, which may help the asset explore a modest price hike in the near future.
Hajiyev had earlier shared how gold may end up forming a false breakout, which could later reshape gold’s next leg up.
“Gold will still go through choppy price action over the coming few days before it takes off higher for real. First, it could form a false breakout, luring early buyers, then sharply sell off, forming a false breakdown, causing total confusion and chaos. Only after this maneuver, Goldtotal could make a legitimate move…”
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