Gold continues its impressive rise, hitting a historic high. Amid economic uncertainties and geopolitical tensions, investors wonder whether this trend will persist.
Gold Prices Surge Amid Global Uncertainty
Gold extended its gains for the fifth consecutive week as investors sought a safe haven amid economic instability. On Friday, spot gold briefly hit $2,800, setting a new all-time high before stabilizing around $2,795 later in the day. The rally was accelerated by U.S. President Donald Trump’s renewed proposal for a 25% tariff on imports from Mexico and Canada. Historically, gold has been viewed as a hedge against inflation and currency fluctuations, reinforcing its role as a store of value during financial uncertainty. Analysts believe that the U.S. trade policies and heightened geopolitical tensions may further push gold beyond the $2,800 mark in the near future.
Şant Manukyan’s Analysis
Renowned financial strategist and İş Yatırım Deputy General Manager Şant Manukyan described this price surge as a “geopolitical rally” rather than a traditional financial market-driven movement. On January 31, he shared his insights, stating: “Good morning, and gold has hit another peak… You don’t often see it coming this clearly, but sometimes the market is generous. To reiterate, this is not a financial or economic rally—it’s a geopolitical one. The primary bull market is still ahead.” Manukyan’s remarks sparked discussion among investors, with many recalling his similar statements from January 3, when he noted: “Gold is not yet rising based on its own fundamentals, and a dollar-based perspective alone does not reflect the full picture.”
What’s Next for Gold?
With ongoing trade wars and geopolitical risks, gold continues to gain strength. However, as Manukyan suggests, this surge is still not the “main rally” investors anticipate. A more significant economic and financial-driven bull run for gold may be on the horizon. As central banks, institutional investors, and governments adjust their strategies, the next phase of the gold market could be crucial for long-term positioning. Will gold break past its record highs again, or is a correction on the way?
Considering the current economic conditions and global political events, gold remains an attractive asset for investors in search of stability. Its potential growth will depend on various factors, including changes in the global economic and political arena.
