Gold prices continue to rise, supported by a favorable economic and political context. On Thursday, the precious metal fell by 0.8% against the strength of the US dollar after the non-farm payroll report was released, which could lead to a price increase in the short term with the possibility of rising in the long term, while many analysts now believe that the $4000 target is not out of reach.
Among the factors fueling this trend, recent political decisions in Washington play a pivotal role. On Tuesday, the US Senate narrowly passed President Donald Trump's major tax reform bill, which could increase federal debt by more than $3 trillion. On the same day, Trump also confirmed that he would not extend the deadline he set for July 9 to finalize new trade agreements, increasing uncertainty.
Against this backdrop, major international investors, including central banks, may continue to prefer safe havens such as Treasury bonds, while increasing their exposure to gold, which is seen as one of the safe-haven assets.
Moreover, there is tangible distrust in the US dollar. Since the United States confiscated Russian reserves in 2022 following its invasion of Ukraine, central banks in many countries, including allied nations like Poland, have been building their gold reserves. For example, China has increased its gold purchases for the seventh consecutive month in May, despite prices already rising.