As the gold market continues to benefit from geopolitical, economic and political uncertainties, the SPDR Gold Shares ETF GLD ended the week near the new all-time record high set on Thursday. It has maintained the same positive momentum since the start of this year that led to a 25% rally in 2024. GLD ETF is currently trading at $270.74, after a slight pullback from its all-time record high of $271.95 set on Thursday.
Trump’s influence on gold prices
In times of economic and geopolitical turmoil, gold is a safe haven. The geopolitical tensions and war in Russia-Ukraine, as well as the Trump’s entry into the Oval Office have contributed to the surge in demand for safe havens.
Market participants expressed concern about his inflationary policies even before he won the presidency. The GLD ETF reached its highest levels in two months a day following his inauguration, on January 20th, as investors began to shift to a more risk-averse mood.
Concerns over Trump’s foreign policy, tariffs and trade wars continue to drive gold prices and assets associated with gold to record levels. Gold price reached a new all-time record of $2,956.05 on Thursday as the financial markets responded to President Trump’s possible shift in position regarding the Russia-Ukraine conflict.
Goldman Sachs’ view on gold price increases
Trump, in an unexpected twist of events has referred to President Zelensky’s as “dictator”. These remarks came in response to President Zelensky’s claim that Trump is living in “a space of disinformation” controlled by Russia.
The rift between Russia and Ukraine has deepened, increasing uncertainty over the possibility of a peace agreement between them. These concerns are a major factor in the rise of gold prices and other assets that provide a safe haven.
Investors are also concerned about the inflation that Trump’s new tariffs may cause. This has heightened demand for gold to protect against inflation. He has implemented several tariffs since taking office and he’s threatened others, as he changes the US trading relationship with foreign countries.
Minutes of the Fed’s meeting in January, recently published, highlighted officials’ concerns that President Obama’s approach could “hinder disinflation”. Minutes also noted “an elevated level of uncertainty” regarding scope, timing and economic effects of potential changes to trade, immigration and fiscal policies.
Gold demand to be boosted by central bank purchases in 2025
The gold price rose in 2024 mainly due to central bank purchases from around the world. The trend will continue into 2025, as central banks seek to diversify away from US dollars and protect their assets against risks.
Goldman Sachs believes central bank purchases will drive gold prices higher. They have since adjusted their forecast for the price to $3,100 per ounce by the end of this year.
Gold-backed ETFs such as SPDR Gold Shares ETF are on the rise, with fundamentals still in the favor of bulls. The trend will continue to surge in the coming months.
Click here to read more about the $52 trillion reason for buying gold and SPDR Gold Trust (GLD).
GLD ETF Stock Forecast
Chart of GLD ETF by TradingView
As we had predicted in the previous article, GLD has made a powerful comeback. The GLD ETF finally broke above the pennant bullish pattern. The pennant pattern is composed of a horizontal line with a triangle pattern. The continuation pattern of this pattern is very popular. This pattern has moved well above any moving average.
Both the Relative Strength Index and MACD have pointed up. The GLD ETF is likely to continue its upward trend as bulls aim for the next major resistance level at $300. It could also drop to $257 before resuming the upward trend. It is called a break-and-retest pattern.
The post GLD ETF Stock Forecast: Can this gold fund reach $300? This post may be updated as new information unfolds
