International gold prices continue to rise

In the second week of 2025, the international gold price ushered in a significant increase, with a cumulative increase of 2.27%. In particular, last Friday (January 10), the international gold price returned to above the $2,700 mark. On that day, the February 2025 gold futures price of the New York Mercantile Exchange closed at $2,715.00/ounce, an increase of 0.90%, a four-week high.

After the release of strong US non-agricultural data last Friday, US Treasury yields and the US dollar index continued their recent gains. The 30-year US Treasury yield rose to more than 5%. The US dollar index, which measures the US dollar against six major currencies, also rose by 0.43% on the same day, closing at 109.651 at the end of the foreign exchange market. Although there is usually a significant negative correlation between US Treasury yields, the US dollar and gold prices, when US Treasury yields rise and the US dollar appreciates, it often leads to a fall in gold prices, and vice versa, but the recent rise in US Treasury yields and the US dollar has not suppressed gold prices.

In this regard, foreign exchange analysts at ING Group said that the main driving forces behind this round of gold price increases include continued geopolitical tensions, a surge in gold safe-haven demand, and an increase in gold reserves by central banks of many countries. Against the backdrop of growing market concerns about the global economic outlook, gold, as a traditional safe-haven asset, usually performs well when economic uncertainty increases and is favored by the market, thus driving up gold prices. In addition, central banks of many countries have actively increased their holdings of gold to cope with future economic uncertainties. This trend has also increased market demand for gold to a certain extent and supported the high price of gold.

Looking ahead, although the international gold price may fluctuate due to a variety of factors, geopolitical risks and the increase in central bank gold reserves will continue to support the gold price. Therefore, it is expected that the international gold price will continue to maintain a strong momentum for a certain period of time. At present, by the end of 2025, $3,000/ounce is still the expected price for the international gold price by many analysis agencies.