Gold Prices Hit Record Highs, Analysts Eye USD3,000 Milestone

Gold market volatility has surged as the precious metal reached an all-time high last week. While risks remain, the bullish trend in gold prices is hard to ignore, with analysts closely monitoring the possibility of gold hitting USD3,000 per ounce in the near future.

According to Kitco.com on Monday (February 24, 2025), gold has recorded an unprecedented eight-week winning streak, closing at historic highs. This marks the longest rally since the mid-2000s, when gold first hit USD2,000 per ounce.

In the latest session, spot gold was trading at USD2,935.80 per ounce, holding steady for the day but up over 2% from last Friday's close (February 21, 2025). Meanwhile, silver has also extended its gains for a fifth consecutive week, though spot silver dropped over 1% on the day, it still rose 1% for the week, trading at USD32.51 per ounce.

Bullish Momentum Persists, Analysts Predict Higher Gold Prices

Despite gold being seen as somewhat expensive at current levels, Christopher Vecchio, Head of Futures & Forex at Tastylive.com, emphasized that the bullish momentum remains strong, backed by solid fundamentals.

According to Vecchio, the upward trend in gold indicates that hitting USD3,000 per ounce is only a matter of time.

“Gold has consistently found strong support at its five-day moving average. Until that momentum shifts, the outlook remains bullish,” he said.

He also pointed out that fundamental pillars supporting gold remain intact, including inflation fears, global trade disruptions, and a shift away from traditional currencies in central bank reserves.

Geopolitical Uncertainty Fuels Gold’s Safe-Haven Demand

On the other hand, Lukman Otunuga, Market Analyst at FXTM, noted that gold still has room for further gains, particularly amid rising geopolitical tensions.

Otunuga highlighted that demand for gold-backed exchange-traded funds (ETFs) has surged in recent weeks, reflecting investors’ increased appetite for safe-haven assets.

He also forecasted that Europe’s political uncertainty could drive further gold demand next week.

“Germany’s election on Sunday (February 23) could shape the country’s economic and political outlook for years to come. A fragmented parliament could trigger risk aversion, boosting safe-haven demand for gold,” he wrote in a note to Kitco News.

Gold Price Forecast: USD3,000 as Key Resistance Level

Beyond political factors, the U.S. PCE inflation report on Friday could influence gold prices through Federal Reserve rate-cut expectations.

From a technical standpoint, a sustained dip below USD2,950 could lead to a retracement to USD2,900. Conversely, if bulls push prices past USD2,950, the next milestone would be the psychological barrier of USD3,000.

James Stanley, Senior Market Strategist at Forex.com, believes gold won’t face major resistance until USD3,000 per ounce.

“USD3,000 is a crucial psychological level that will take time to break. I expect gold to reach that level but consolidate before moving higher,” he stated.

Meanwhile, Naeem Aslam, Chief Investment Officer at Zaye Capital Markets, warned that monetary policy shifts remain the biggest risk for gold.

"If inflation cools faster than expected or central banks adopt a more aggressive tightening approach, gold could face downside pressure," he concluded.

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