Gold Price News: USD 2,640 - Bitcoin debate and XETRA gold decline

The price of gold stood at USD 2,640 per troy ounce on January 03, 2025, which represents a slight consolidation after the increases of recent days. Despite a stable start to the year, gold remains a key investment due to geopolitical uncertainties and demand from central banks.

Bitcoin reached new records in 2024 and exceeded the USD 100,000 mark for the first time. According to Bernstein analyst Gautam Chhugani, Bitcoin could replace gold as the most important store of value in the coming years. He predicts that Bitcoin could rise to USD 200,000 by the end of 2025 and will be integrated into the strategic allocations of institutional investors in the long term.

Chhugani points to the approval of Bitcoin ETFs and regulatory developments in the US, which have made the crypto market more stable and accessible. However, the debate remains controversial among investors as Bitcoin's high volatility continues to pose a risk.

Gold holdings in the exchange-traded security XETRA-Gold fell significantly to 166.5 tons at the end of 2024, a decrease of around 32 tons compared to the previous year. This was due to increased sales as a result of the high gold price, explained Steffen Orben, Managing Director of Deutsche Börse Commodities GmbH.

While physical holdings shrank, XETRA gold assets under management rose by 13% to around EUR 13.5 billion in 2024 due to price gains. Exchange-traded securities such as XETRA Gold remain a popular alternative to the physical acquisition of gold in the form of bars and coins for many investors.

The gold price continues to be supported by geopolitical conflicts. Russian drone attacks on Kiev and Israeli military operations in Gaza have increased uncertainty on the markets. At the same time, the US Federal Reserve is signaling a cautious stance on interest rate cuts, which could reduce the attractiveness of gold as a non-interest-bearing investment.

The gold price is currently hovering just below the USD 2,650 mark. Important support zones lie at USD 2,620, while the next resistance level is expected to be USD 2,670. Analysts expect gold to move in a narrow range in the short term before new impulses shape the market.

The forecasts for gold in 2025 remain positive. Experts expect an increase of up to USD 3,000 per troy ounce. The debate surrounding Bitcoin and its importance as a store of value is also likely to influence the market. Investors should keep a close eye on developments in both markets, as geopolitical and economic uncertainties could provide decisive impetus.