Will gold prices continue to rise this week and next year?
Will gold prices continue to rise this week and next year? The spot price of gold traded just above $4,498 per ounce on December 26 at 8:12 am IST. This marked a gain of 0.43 percent from the previous session and a rise of 3.69 percent over the past week. Gold touched a record high of $4,521.70 per ounce on December 24.
Breakout above key levels supports gold trend
According to the Augmont Bullion report, gold broke above its earlier resistance near $4,400 after two months of consolidation between $3,935 and $4,400. The report expects the rally to extend toward $4,575 and later toward $5,000 per ounce in the coming weeks.
Economic signals point to easier monetary policy
Although US third-quarter GDP expanded at a 4.3 percent annual rate, consumer confidence weakened in December. Manufacturing output also stayed unchanged in November. These signals increased expectations that the US Federal Reserve may soften its policy stance in the coming months.
Geopolitical tensions drive safe-haven demand
The conflict between Israel and Iran, rising tensions between the United States and Venezuela, and the ongoing Russia-Ukraine war increased demand for safe-haven assets. The US military strike against ISIS targets in Nigeria also added to market caution. These factors supported gold buying across global markets.
Federal Reserve outlook supports gold prices
US President Donald Trump said the next Federal Reserve chair should support lower interest rates. He added that candidates who disagree with this view would not be considered. These comments raised concerns about the independence of the Federal Reserve. Markets continue to price in two rate cuts in 2026, which supports non-yielding assets like gold.
Gold futures and silver prices hit records
US gold futures for February rose 0.7 percent to a record $4,533.60 per ounce. Silver futures also surged, rising close to 4 percent, as traders increased bets on further US rate cuts. Silver prices traded near $72.70 per ounce, marking strong gains this year.
What gold investors should do now?
Will gold prices continue to rise this week and next year? Analysts believe prices may stay elevated as inflation cools, labor market data weakens, and central banks continue gold purchases. Ongoing global uncertainty remains a key factor supporting long-term demand.
FAQs
Q1: Will gold prices continue to rise this week and next year?
Gold prices may remain high due to geopolitical tensions, expectations of US rate cuts, and strong safe-haven demand. Analysts expect price support to continue into next year.
Q2: What is driving gold prices higher now?
Gold prices are rising due to global conflicts, weaker economic signals, expectations of Federal Reserve rate cuts, and increased investor demand for safe-haven assets.