Gold closed with a strong increase of 1% on the first trading day of 2025, driven by a robust demand for security.
Analysts highlight ongoing uncertainties in the global economy and geopolitical tensions, which fuel interest in the precious metal.On the Comex division of the New York Mercantile Exchange (Nymex), gold for March delivery rose by 1.06%, reaching $2,669.00 per troy ounce.Joseph Dahrieh, an analyst at Tickmill, views this years outlook for gold as promising.
He suggests that the metal will likely achieve greater gains amid persistent global uncertainty, central bank purchases, and demand for safe assets.Demand for Security Drives Golds Strong Start to 2025.
(Photo Internet reproduction)Dahrieh believes this scenario will outweigh potential headwinds, such as the strength of the United States dollar and adjustments in the pace of interest rate cuts by the Federal Reserve (Fed).In a report, Deutsche Bank notes that gold experienced its largest annual gain since 2010 last year.
This surge resulted from concerns about political uncertainty in Europe, escalating conflicts in the Middle East, and delays by central banks in initiating monetary policy easing.