Gold price forecast 2025 drop derivatives desks examining gold price

Derivatives desks examining gold price forecast 2025 drop scenarios cite skew in put options, with 1-month 1,950 strike trading at implied vols above 18%, indicating traders are bracing for notable downside moves. Crypto markets are continuing their rise this week after weaker-than-expected U.S. labor data and amid a government shutdown that saw the market adopt the stance that a Federal Reserve rate cut next month is a near certainty. A number of gold analysts say the increase in gold prices is likely to continue, reaching $4,000 by the end of 2025 or mid-2026. The trends supporting rising gold prices have been world central banks moving away from U.S. dollar reserves and stocking up on gold amid concerns about U.S. debt, geopolitical unrest continuing in Ukraine and the Middle East, and economic uncertainty looming over global markets by shifting U.S. tariffs and policy. Strategic asset allocators considering gold price forecast 2025 drop lean on cross-asset correlation matrices, showing gold-beta value rising versus equities, something that historically signals a period of lower hedging demand.