Gold Stays Strong

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Gold Stays Strong

Gold Stays Strong Amid Uncertainty - Commerzbank

It seems that the Gold is on a rollercoaster, as evident from its price swings as of late. Despite this, Gold (XAU/USD) remains strong as the uncertainty over the global economy remains a persistent risk.

The Gold is above the $3K price level, which is a record in itself. If we look at the Gold prices in the last few decades, it becomes clear that Gold is in a long-term uptrend.

Gold To Reach $7k By 2030

The real reason why Gold has been going up and down so fast is the US trade conflict, US inflation data, and less demand for safe-haven assets. Also, other data from the US was positive, which also dented the Gold prices.

But despite the recent setbacks, Gold is in a bullish trend over the medium and long term. Looking ahead, the forecasts for more rate cuts will be beneficial as the Gold is a non-yielding asset.

Short-term economic data and interest rate projections are probably going to be overshadowed by developments in the trade dispute.

The bottom line is that Gold is up by 30% since the start of 2025, and that's no joke. Sure, that might not be attractive enough if we look at the crypto market, but 30% is a lot!

This is a sign that the demand for safe-haven assets is stronger than ever. And with the arrival of more rate cuts around the globe, it will only push the Gold prices even higher.

The price of gold is probably going to keep declining if more 'deals' between the US and its trading partners are announced in the upcoming weeks.

According to Charlie Morris (a famous economist), the Gold prices will be near $7000 by the year 2030. So, that's more than double the current price of the Gold and shows things are looking really bright.

So, for those who need a safe haven asset and also want protection from the inflation, there's nothing better than Gold!

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