Trump becomes the biggest positive factor, gold hits a new high, another major country has bought a large amount of gold in the past few months
As the potentially destructive trade policies of the Trump administration create market uncertainty and global geopolitical tensions rise, investors are turning to gold, a traditional safe-haven asset. In recent months, the Iranian government has also been significantly increasing its gold holdings, with 20% of its foreign exchange reserves converted to gold. Macquarie Group expects gold prices to soar to $3,500 per ounce in the second quarter, while BNP Paribas also anticipates that future gold prices will be well above $3,000 per ounce
Gold prices have continued to rise recently, reaching a new historical high. According to Bloomberg, due to increasing concerns about the outlook for the U.S. economy, the demand for gold as a safe-haven asset has significantly increased, especially as the potential implementation of destructive trade policies by the Trump administration has created market uncertainty, prompting investors to turn to gold as a traditional safe-haven asset.
Currently, major financial institutions have begun to significantly raise their gold price forecasts.
Macquarie Group released a report this week, predicting that gold prices will soar to $3,500 per ounce in the second quarter, far exceeding the current $2,986 per ounce. Meanwhile, BNP Paribas also expects the average gold price in the future to be well above $3,000 per ounce.
Market analysts point out that if the U.S. implements more trade barriers and protectionist measures, global economic uncertainty will further increase, continuing to drive demand for safe-haven assets.
Iran's Massive Gold Accumulation in Response to International Situation
In addition to the potentially destructive trade policies of the Trump administration, global geopolitical tensions have also become a catalyst for rising gold prices.
In recent months, Iran has stated that it will convert a large portion of its foreign exchange reserves into gold. As of January 19, Iran has imported at least 81 tons of gold, with the value of these imports increasing by over 300% year-on-year, according to data from the country's customs authority, and the weight increasing by 234%.
Iran's central bank governor, Mohammad Reza Farzin, stated last December that 20% of the country's foreign exchange reserves have been converted into gold, placing Iran among the top countries globally in terms of the gold-to-foreign-exchange reserves ratio.
In the face of potential international sanctions and diplomatic pressures, the Iranian government views gold as an important tool for protecting national wealth.
Bloomberg points out that Iran's strategy reflects a common trend among many emerging market countries—converting dollars into gold during periods of geopolitical instability to reduce risk.
Furthermore, if this trend spreads to other countries, it could further increase the demand for gold.