Gold Price Dips Over 3% Amid Rumors Of Middle East Ceasefire: Is Gold A Good Investment NOW?

When discussing investment options, gold has consistently remained a favored choice due to its stability and inherent value. Gold has experienced an impressive year so far, up by over 30% year-to-date. Throughout 2024, the price of gold has consistently shattered records and attained unprecedented all-time highs, largely driven by economic unpredictability, global instability, and heightened investor interest, thereby reinforcing its appeal as a dependable investment in tumultuous times.

Despite gold outperforming several other assets in recent months, it experienced its worst weekly performance in over five months subsequent to Trump’s reelection on November 5 for a second non-consecutive four-year term. Following reports of de-escalating geopolitical tension in the Middle East, gold prices fell sharply on November 25 as the news dents the safe haven metal’s appeal.

This price drop raises an intriguing question: Is now the right time to buy into gold? In this article, we will explore and find the right answer.

BTCC, one of the longest-running crypto exchanges in the world, supports Tokenized Gold Futures trading with a leverage up to 150Χ, users who are interested in gold trading currently can use USDT to trade gold commodity on BTCC without opening an account with other traditional exchanges.

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Table of Contents

Latest News & Updates on Gold

What Affect the Price of Gold?

Should Buy Gold as the Price Plunges?

How to Invest in Gold?

How to Buy Gold on BTCC?

Conclusion

Latest News & Updates on Gold

Gold

Key data points

(Data from OANDA)

Spot gold dropped about 3% to $2,627.01 an ounce by 12:20 p.m. ET on November 25 , breaking a five-session rally to its highest in nearly three weeks. US gold futures slumped 2.9% at $2,634.40 an ounce in New York. The sharp decline of gold price is mainly due to news from a ceasefire between Lebanon and Israel crossed the wires, exacerbating appetite for riskier assets.

Another factor in bullion’s price decline was Donald Trump’s nomination of Scott Bessent for Treasury Secretary, a choice that many see would inject more stability into the US economy and financial markets.

After last week’s rally, gold prices were poised for a sell-off due to buying exhaustion, as noted by TD Securities commodity strategist Daniel Ghali. Furthermore, the appointment of Scott Bessent served to diminish some of the risk premium associated with the United States, reinforcing this sentiment.

However, gold has still increased roughly 30% so far this year, supported by central bank purchases and the Fed’s pivot to rate cuts. Haven buying has also been a feature on an escalation in the Russia-Ukraine war.

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What Affect the Price of Gold?

Gold price is volatile depending on many factors. Next, we will explore the major factors affecting gold price.

• Economic uncertainty: gold plays a pivotal role in the realm of finance and investing as it is a formidable hedge against such unpredictability. It showcases its prowess in generating substantial returns for investors, particularly when concerns over rising inflation and declining interest rates arise, making the holding of cash less favorable.
• Fiscal policy: the pricing of gold in US dollars establishes an inverse relationship between the commodity and the currency. Announcements and expectations regarding hikes in US interest rates bolster the dollar’s strength, exerting pressure on gold prices. Conversely, discussions and anticipations of lower rates can weaken the US dollar, resulting in an increase in gold prices.
• Geopolitical risks: geopolitical risks further elevate gold’s status as a safe haven. During times of global unrest, such as political turmoil, trade disputes, and natural calamities, investors flock to gold, pushing its prices upward. The yellow metal has witnessed a notable surge in price globally in 2024, amidst heightened geopolitical tensions.
• Investor sentiment: investor sentiment also plays a crucial role in determining gold’s price movements.  Market participants’ perceptions of gold as an investment can spark speculative trading, leading to short-term volatility.  Positive outlooks on gold drive prices up, while a bearish sentiment surrounding the precious metal can cause prices to decline.

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Should Buy Gold as the Price Plunges?

Despite gold has seen massive price drop during recent period, most banks remain positive on the outlook, with Goldman Sachs and UBS seeing further gains in 2025. Based on current market dynamics, the answer is yes — now could be an excellent time to add gold to your portfolio. Historically, gold has demonstrated resilience and a propensity for value appreciation over time, particularly during phases of economic unpredictability.  Analysts foresee continued demand pushing prices upwards, with some projections anticipating a reach of $3,000 per ounce in the upcoming months.  This renders current prices a tempting buying proposition for both novice investors and those aiming to augment their gold holdings.

Beyond the huge potential for price growth, gold serves as a unique niche in a well-balanced portfolio, renowned for its diversification benefits that shield against downturns in other markets.  During economic crises or inflationary eras, gold frequently outperforms stocks and bonds, a trait that is invaluable in today’s environment marked by lingering inflation concerns, potential interest rate adjustments, and global tensions that have sparked volatility across various asset classes.

Investing in gold now also serves as a future hedge against inflation.  Although the inflation rate currently aligns with the Federal Reserve’s 2% target, the possibility of an unexpected resurgence in inflation persists.  In such a scenario, the costs of goods and services escalate, diminishing the purchasing power of cash, whereas gold tends to maintain its value.  This hedging capability has heightened gold’s appeal in recent years.  Thus, if you are concerned about safeguarding your assets from future inflation-related issues, incorporating gold could be a strategic decision.

Moreover, central banks are enhancing their gold reserves, which could stimulate demand and further stabilize prices.  Central banks have consistently purchased gold, both as a hedge and to diversify their reserves.  Additionally, the industrial sector’s demand for gold, notably in electronics and medical devices, remains robust, fueling further demand.  These factors collectively point to a favorable long-term outlook for gold, making the current juncture an advantageous time to invest, especially at attractive prices.

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Gold Price Forecast & Predictions: 2024 and Beyond

Gold Price Prediction 2024

Due to global geopolitical tensions and uncertainty over the future actions of the Federal Reserve, precious metals are in high demand as protective instruments. More and more countries are buying XAUUSD as a protection tool against high prices and to protect the domestic market from external factors.

The World Bank anticipates an average price of $2,100.00 per ounce in 2024. This forecast is based on the assumption that the conflict in the Middle East could lead to increased global uncertainty and a sharp rise in the cost of the precious metal.

The International Monetary Fund projects an average price of $1,775.00 per ounce in 2024. This forecast is based on inflation expectations, the state of financial markets, and economic performance.

According to Capex, Goldman Sachs, an investment bank, has a more optimistic outlook at $2,133 per ounce for the precious metal in 2024. According to analysts, XAUUSD will trade above the market, attributing this to heightened fear among investors and gold’s safe-haven status amidst rising uncertainty and the specter of a US recession this year.

The Dutch bank, on the other hand, anticipates an average price of $2,000 per ounce, based on expectations of stronger US dollar, higher interest rates, lower investor demand, and reduced inflationary pressures.

The analytical portal Predict-Price reports that the price of gold will continue to grow in 2024. Thus, in a bullish scenario, quotes of the asset may reach $3,613.12. In a bearish scenario, the price may plunge to $2,198.46.

Trading Economics analysts believe that by the end of the current quarter, the price of gold will be around $2,310.02 per ounce. By the end of the year, according to expert forecasts and global macro models, the price could reach $2,483.74.

According to Coin Price Forecast, gold may hit $2,419.00 per ounce by the middle of the year. By the end of 2024, experts anticipate that the value of the precious metal will continue to rise to $2,651.00.

According to WalletInvestor’s forecast, the price will range between $2405.73-2454.45 throughout the year. By the end of the year, gold will reach $2441.01 per ounce.

GovCapital estimates that the price of XAUUSD will range between $2,212.60 and $2,391.50 during 2024. At the same time, experts do not rule out a possible surge up to $2,750.23.

Gold Price Prediction 2025 – 2030

Analysts and experts have mixed forecasts for the XAUUSD exchange rate from 2025 to 2030. Still, many expect precious metals prices to keep rising over the next five years.

WalletInvestor predicts that gold will continue to surge in 2025, reaching $2,520.83 by December. In the first quarter of 2026, gold will fluctuate between $2,522.08 and $2,586.30, reaching the level of $2,599.80 by the end of the year. Analysts believe that the moderate bullish trend will continue in 2027-2029. As a result, experts expect gold prices to reach around $2,823.56 per ounce in May 2029.

CoinCodex analysts predict that the price of XAUUSD will rise to $3,210.14 in the next five years. By 2030, experts expect gold price to reach around $3,797.10 per ounce.

According to Forecast-Price, gold prices will fluctuate between $2,148.94 and $4,270.93 in 2025. In addition, AI predicts that XAUUSD will grow further to $4,928.74 in 2026. At the same time, the probability of no clear trend is 95.68%.

CoinPriceForecast forecasts that gold will reach $2,677.00 by mid-2025, $2,925.00 by the end of the year, and $3,164.00 by the end of 2026. In addition, the analyst noted that the price of this precious metal will continue to rise between 2027-2030, reaching $4,649.00 per ounce.

GovCapital forecasts that gold will average $2,392.01 in early 2025 and could rise to $3,736.97 by the end of the fiscal year. Analysts are very bullish on the precious metal, expecting its price to reach an unprecedented $11,644.26 per ounce in May 2029.

How to Invest in Gold?

Once you’ve made the decision to invest in gold, the subsequent question that arises is: Which type of gold asset is the most sensible choice? Here’s what you may want to consider investing in now:

• Physical gold: Gold bullion bars and coins offer a tangible way to own gold, independent of the market fluctuations of other investment options. The security that bullion provides, being a physical item that you can hold, is unparalleled.  However, the costs associated with storing and insuring physical gold can be substantial.
• Gold ETFs: For investors seeking flexibility and convenience, gold exchange-traded funds (ETFs) are a popular alternative.  Gold ETFs enable investors to purchase shares that represent ownership in a specific quantity of gold, without the hassle of managing or storing physical gold.  They offer liquidity and generally come with lower costs compared to physical gold.
• Gold mining stocks: Investing in gold mining companies is another option that provides exposure to gold’s price performance without the need to directly purchase the metal.  When the price of gold rises, mining companies typically experience increased profits, which can translate to higher stock prices.  However, it’s worth noting that gold mining stocks can be volatile, as they are influenced by factors such as production costs and other operational challenges.

How to Buy Gold on BTCC?

BTCC currently supports tokenized gold  futures trading with a leverage of up to 150Χ, users who are interested in gold trading currently can use USDT to trade gold commodity on BTCC.

The following sets forth the detail guidance on how to trade tokenized gold futures on BTCC.

Step One: go to the BTCC homepage and log in to your BTCC account. If you do not have an account, you need to register first.

Step Two: on the BTCC official homepage, choose “Deposite” , and then fund your account with your preferred method (fiat deposit, crypto deposit or convert).

Step Three: go back to the BTCC official homepage, choose “Futures” -“USDT-M Perpetual Futures Contract”-“Tokenized Stocks&Commodities”-“GOLDUSDT”.

You can also directly click the button below to enter the gold order page.

Step Four:go back to the BTCC official homepage, choose “Futures” -“USDT-M Perpetual Futures Contract”, and find the gold trading pair.

• Market Order: users place orders at the best price in the current market to achieve fast trading.
• Limit Order: Limit orders are a type of order to buy or sell futures at a price more favourable than the market price. When you buy at a price lower than the market price or sell at a price higher than the market price, the order will be in the form of a limit order.
• SL/TP Order: SL/TP orders are a type of order to buy or sell futures at a price less favourable than the market price. When you buy at a price higher than the market price or sell at a price lower than the market price, the order will be in the form of a SL/TP order.

Step Five: adjust the leverage multiple.

Please keep in mind that operating leverage carries the risk of liquidation. Leverage should be adjusted based on your financial status and risk tolerance.

Step Six: choose the lot size and set the SL/TP price .

Step Seven: after setting the basic data information, users can choose to buy (open long) or sell (open short) after entering their ideal price. Traders should remind that the price cannot be higher or lower than the highest buying price or lowest selling price of the platform.

Step Eight: click the buy or sell button, and the tokenized gold  futures contract order is completed.

Conclusion

Ultimately, the decision to purchase gold should align with  your financial objectives, risk appetite, and investment approach. However, the recent decline in gold prices presents investors with a unique opportunity. Considering its impressive performance this year and promising long-term prospects, the present moment could be a strategic time to acquire gold at a reduced price point.

Irrespective of whether you opt for physical gold, gold ETFs, or gold mining stocks, each category of gold assets offers distinct benefits that can enrich your portfolio. Furthermore, gold continues to be a prudent choice for numerous investors due to its ability to hedge against inflation, provide diversification, and function as a safe haven during times of uncertainty.

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