Gold prices rose by about 30% in 2024 and continued to climb in the early weeks of 2025. However, after reaching a peak of $2,936 an ounce in February, they started slumping, despite ongoing factors that initially drove the increase.

On Monday, March 10, gold prices fell to a weekly low of $2,883 an ounce, according to the World Gold Council, before rebounding to $2,910 an ounce at 09:10 GMT on March 11. Gold has recently fluctuated between $2,800 and $2,900 an ounce due to market pressures. In early January, Citigroup analysts estimated that gold could pass $3,000 an ounce by the end of Q1 2025.

Various factors drive the volatility in gold prices. They include the decline in the dollar and US bond yields, which have made gold more appealing to investors. Uncertainty surrounding trade tensions, particularly after the Trump administration imposed new taxes on Mexican and Canadian imports, is fueling demand for safe-haven assets like gold. However, profit-taking has slowed this advance, as the rise in gold prices prompted major investors to sell and realize capital gains.

Analysts believe that monetary policy developments remain crucial. A persistent rise in US inflation could force the Federal Reserve to maintain high interest rates, which would limit gold's appeal since it does not generate income. Investors are awaiting the release of US consumer and producer price indices this week, which could influence expectations about the Fed's decisions.

Ilya Spivak, an analyst at the trading platform Tastylive, notes that gold prices have been stable between $2,830 and $2,960 over the past four weeks. According to Spivak, a major move beyond these levels is needed to confirm a sustained trend, as quoted by Reuters.

Emiliano Tossou