Gold: Buy the Dips

11.28.24 - Gold: Buy the Dips

Gold last traded at $2,669 an ounce. Silver at $30.80 an ounce.

Buy gold after its pullbacks - because it may hit $3,000 in 2025

Gold prices have been showing signs of life after a drop last week to their lowest level in two months, with worrisome headlines tied to the Russia-Ukraine war boosting the possibility of a rise to fresh record highs before the year is done.

However, one analyst said investors should avoid chasing big moves and take advantage of price pullbacks to buy the precious metal ahead of a potential climb toward $3,000 an ounce next year.

Donald Trump's election victory led the war premium in gold prices to deflate for a time, but U.S. approval for Ukraine to use long-range missiles on Russia was viewed as a "serious escalation of events as Trump's administration remains two months away from assuming power," said Peter Spina, president and founder of gold news and information provider GoldSeek.com, in recent comments to MarketWatch. That's helped to prop up prices for the precious metal once again.

"This is a very dangerous situation ... and should support gold prices if the situation does not quickly de-escalate," he said. Russian President Vladimir Putin could be open to talks on a cease-fire in Ukraine with Trump, according to a report from Reuters, which cited five sources with knowledge of the Kremlin's thinking.

Still, gold prices settled higher for a third session in a row Wednesday.