Gold remains positioned for further gains despite retreating from February’s peak of $2,954 per ounce. Many market observers continue to view the recent pullback as temporary and still expect gold to test the $3,000 level.
Financial analyst Jesse Colombo, known for forecasting the last major financial crisis, attributes the recent dip mainly to a stronger U.S. dollar rather than any fundamental weakness in gold itself. He notes that gold has held up much better when priced in euros, underscoring the currency-driven nature of the correction.
The primary drivers behind gold’s robust performance in February are still intact. Tariff plans announced by the Trump administration—targeting China, Mexico, Canada and the European Union—have increased global economic uncertainty and encouraged investors to seek safe-haven assets like gold.
Developments in the Russia-Ukraine peace negotiations are also affecting sentiment. Analyst Ajay Kedia says the pullback in prices partly reflects a lower “war premium” after apparent progress in talks. However, Kedia cautions that if negotiations fail to produce a clear path to lasting peace, the $3,000 target remains achievable.
Physical demand for gold continues to be strong. Singapore-based dealer Bullionstar reports unprecedented interest in large gold bars from suppliers, contributing to supply constraints as both retail and institutional buyers increase purchases.
In summary, the recent decline in gold prices looks largely driven by currency moves and evolving geopolitical optimism rather than a weakening of underlying demand or fundamentals. With trade tensions, geopolitical risks and steady physical demand still in play, many analysts remain bullish on gold’s prospects toward $3,000 per ounce.