Gold hits new record high, approaching $5,000 per ounce

Gold prices continued their strong rise during Friday trading, with the yellow metal climbing to nearly $4,967 per ounce, setting a new record and heading for its strongest weekly performance since March 2020, supported by escalating geopolitical risks and the continued weakness of the US dollar.

Gold is a safe haven amid political uncertainty

Gold continues to strengthen its position as a key hedge against the unpredictability of US policies, particularly those related to the actions of US President Donald Trump.

Despite the easing of threats to impose tariffs on Europe, gold's gains have not been negatively affected, as concerns about Washington's ambitions regarding Greenland continue. On the contrary, gold has risen further, reaching new historic highs.

Uncertainty over Greenland agreement supports demand for gold

Trump had announced that the US would secure permanent access to Greenland under an agreement with NATO, but the details of this agreement remain unclear, at a time when Denmark has emphasized its full sovereignty over the island, keeping geopolitical uncertainty alive and supporting gold prices.

As we mentioned yesterday Here

Easing trade tensions has no negative impact on gold

The US president canceled the tariffs he had planned to impose on European imports, while the European Union announced the suspension of the countermeasures it had previously threatened, as it continued its efforts to obtain clarification on the US position.

Despite these relatively positive developments, gold maintained its upward trend, indicating strong buying momentum.

Anticipating the US Federal Reserve's decisions

The US Federal Reserve is widely expected to keep interest rates unchanged at its next meeting, supported by indicators reflecting the resilience of the US economy.

However, markets are still pricing in the possibility of two interest rate cuts later in the year, which supports continued demand for gold.

Selection of next Fed chair under scrutiny

Markets are also awaiting Trump's announcement of the next candidate for Fed chair, following the completion of candidate interviews.

Analysts believe that the appointment of a dovish figure could reinforce expectations of further interest rate cuts, which could push gold prices higher in the coming period.

Central banks boost their gold reserves

On the other hand, estimates indicate that global central banks, particularly in emerging markets, continue to increase their gold purchases on an almost daily basis, as part of growing efforts to diversify reserves and reduce dependence on the US dollar, which provides long-term structural support for gold prices.

Factors supporting the continued rise of gold

• Persistent global geopolitical risks
• Weak US dollar
• Expectations of accommodative monetary policy
• Increased institutional demand from central banks
• Use of gold as a hedge against inflation and instability

Market expectations and gold performance

Gold is experiencing its strongest weekly performance since March 2020, reflecting a strategic shift in investor preferences toward tangible assets amid a global economic environment characterized by uncertainty.

The price of gold is also approaching a new historic threshold of $5,000 per ounce, setting record highs amid a complex investment environment.

We continue to expect further gains in the medium to long term towards $5,500 and then $6,000 per ounce.