Gold continues to perform well, opening strong at $2,622.08, seeing continued momentum despite the market being a little quiet ahead of the year-end holidays.
At exactly 11.40 am, the price of gold was at $2,626.945, up 0.19% since it opened in early trading today.
Rising central bank demand, geopolitical tensions, and low interest rates are expected to continue to drive gold prices to $3,000 in 2025.
Central banks, including China, continue to buy gold to diversify reserves, according to Anderson Cheung, Global Head of Commodities at Best Profit Capital.
According to the World Gold Council (WGC), central banks bought 694 tonnes of gold in the first nine months of 2024, indicating strong demand for the yellow metal.
Geopolitical tensions, particularly the Russia-Ukraine war and conflicts in the Middle East, have also driven demand for gold as a safe haven asset.
Faced with the transition of administration in the United States (US) and Donald Trump's pro-business policies, which could strengthen the US dollar, gold prices may face some pressure in the near term.
However, the expected interest rate cut in the second half of 2025 is expected to provide room for gold prices to surge higher.
