World Gold Council expert recommends when gold price exceeds 3,000 USD/ounce

The increasingly tense trade war has led investors to seek risk-hedging solutions. Therefore, although gold has surpassed 3,000 USD/ounce, it is still of great interest to investors. Mr. John Reade, Director of Market Strategy of the World Gold Council (WGC), commented that gold will continue to be a safe storage asset chosen by many investors in the coming time.

Mr. John Reade, Director of Market Strategy, World Gold Council (WGC).

Gold prices have just surpassed the historic milestone of $3,000/ounce. What factors do you think contributed to this increase?

The rapid rise in gold prices reflects a confluence of factors, including geopolitical tensions, economic uncertainty, and changes in monetary policy. Gold prices rose from $2,500 an ounce to $3,000 an ounce in just 210 days — much faster than previous price increases. This shows that gold prices have accumulated strong upward momentum over the past two years.

Gold’s move to $3,000 an ounce marks a significant milestone and reinforces its status as a safe haven asset in times of uncertainty. From $1,000 an ounce during the financial crisis to $2,000 an ounce during the Covid-19 pandemic, gold has proven to perform well in times when investors seek protection from risk, delivering returns comparable to most other asset classes since 1971.

Since 2022, gold has broken its close relationship with US interest rates and the US dollar as central banks doubled their gold purchases and emerging market investment demand for gold surged.

In recent years, central banks have continued to buy gold even when gold prices have continuously broken new records. Why is that, sir?

Central banks have been net buyers of gold for the past 15 years, but in the last three years they have increased their purchases by more than 1,000 tonnes per year from 2022, reaching 1,045 tonnes in 2024.

Central banks have played a key role in driving up gold prices. The continued buying by central banks shows the importance of gold in the official reserve strategy of countries, especially in times of heightened geopolitical risk. This not only boosts gold prices but also shows confidence in the long-term value of gold.

Gold has surpassed the $3,000/ounce mark. What is your prediction for gold prices in the coming time?

The recent rise in gold prices has been fueled by trade wars and geopolitical uncertainty around the world, which has further increased investors’ interest in gold as an important portfolio diversifier.

While increased risks and uncertainty have boosted sentiment towards gold, for gold prices to remain consistently high, there needs to be increased investment demand. This could be achieved through continued central bank purchases or stronger participation from Western investors.

Whether gold prices can sustain these historic highs remains to be seen. However, one thing is certain: gold’s role as a safe haven asset has become clearer than ever.

As you said, if gold wants to continue to increase, it must come from strong buying power from central banks or western investors. What about gold demand from emerging markets, in your opinion?

Emerging markets play a major role in the global gold market. As these economies develop, demand for gold for both investment and cultural purposes continues to increase. This growing demand for gold not only drives global gold prices but also underscores the widespread appeal of the precious metal.

Emerging market investors are playing an increasingly important role. In China, a sluggish property market has driven investors to gold. In Türkiye, demand for gold has surged as households seek to hedge against a weakening currency, while India’s move to cut import duties has fueled purchases.

Source: https://baodautu.vn/chuyen-gia-hoi-dong-vang-the-gioi-khuyen-nghi-khi-gia-vang-vuot--3000-usdounce-d261819.html