Gold may ‘have gotten ahead of itself’ on new record – analyst

Tue Mar 04 2025

Gold may “have gotten ahead of itself” after hitting yet another record last month, RBC analysts have warned.  At $2,958 an ounce, spot gold hit its latest in a string of new highs in late February, before receding back to $2,919 as of Tuesday.

RBC noted the pullback was in line with expectations for “some sort of consolidation” and pointed to profit taking.  Economic uncertainty and fears around tariffs, that had been driving the price most recently, were likely already largely priced in, analysts said.

“While there is not necessarily a hard ceiling on uncertainty-driven demand for perceived safe havens, there are reasons to think exhaustion could take hold, especially given how much uncertainty has driven gold higher already.

“We remain of the view that, while gold can continue to make runs at highs and even set them, some consolidation is overdue.

“There are plenty of reasons to expect ongoing uncertainty around tariffs, trade, conflict, and policy, yet at current price levels, we think incremental gains should become incrementally more difficult.”

Source: https://www.proactiveinvestors.co.uk/