The escalation of tensions between Russia and Ukraine has intensified geopolitical concerns, prompting investors to seek refuge.

After a brief correction last week, gold prices have resumed their upward trend this week.

On Thursday (November 21), spot gold touched $2,660 per ounce during trading, rising for the fourth consecutive day, reaching a nearly two-week high.

Since the beginning of this year, gold prices have increased by more than 28%, largely due to central bank purchases, the Federal Reserve's shift, and geopolitical tensions in Europe and the Middle East.

Goldman Sachs expects gold prices to further rise to $3,000 per ounce by the end of next year, while UBS Group projects that gold prices will reach $2,900 per ounce.

Geopolitical situations have triggered defensive bids.

A knowledgeable western official stated that the Ukrainian armed forces have launched British cruise missiles at military targets within Russia for the first time, marking a new phase in the 1000-day conflict.

At the same time, Russia stated that it is ready to negotiate with the USA's elected president Trump regarding a possible ceasefire with Ukraine, although western officials are skeptical about this.

Earlier this week, Russian President Putin signed an updated nuclear policy, indicating that Russia might consider using nuclear weapons in response to conventional missile attacks supported by nuclear powers. Geopolitical tensions have driven up gold prices.

In addition to the Russia-Ukraine situation, tensions in the Middle East continue, which also provides support for gold prices.

According to the United Nations official website and CNN, on November 20 local time, the UN Security Council voted on a Gaza ceasefire resolution proposed by 10 non-permanent members. The resolution failed to pass due to a veto from the USA, while the other 14 member states voted in favor.

Additionally, on November 20 local time, the Israeli army attacked a house located in the Sheikh Radwan community in northern Gaza City, resulting in 66 deaths and several dozen injuries.

Analyst Suki Cooper from Standard Chartered banks stated in a report: "Geopolitical risks are intensifying, coupled with widespread market uncertainty and increasing concerns about unknown risks since the outbreak of the pandemic, reigniting interest in the gold market as a safe-haven asset."

"But macro factors – including the dollar and expectations of interest rate cuts – may set the tone in the short term," he stated.

Investors' attention is also focused on several Federal Reserve officials who will speak this week. The market's expectation for a rate cut in December has significantly decreased, with the current likelihood at 55.7%, down from 82.5% a week ago.

ANZ stated in a report: "The Federal Reserve's pause on rate cuts in December may suppress gold prices in the short term, but the loose monetary cycle, macroeconomic and geopolitical uncertainties, as well as healthy physical demand, will maintain a positive sentiment in the gold market."

Brokers believe that the tariffs proposed by President-elect Trump will exacerbate volatility in global markets, stimulate inflationary pressures, and consequently limit the flexibility of major central banks to ease monetary policy.

Gold is seen as a hedge against inflation, but higher interest rates reduce the appeal of holding this non-yielding asset.

Gold prices are expected to hit $3,000 next year!

Peter Spina, president and CEO of GoldSeek.com, stated that the larger trend for gold continues—these trends include de-dollarization and strong bids from central banks. He mentioned that excluding short-term events, gold has entered a "consolidation phase that is expected to last for weeks."

Spina mentioned that if this continues, by mid-year, gold prices seem set to reach "$3,000/ounce." However, the current uncertainty of events in Europe has delayed this timeline.

At present, investors are best advised "not to chase significant gains, viewing the coming weeks as a window to accumulate gold closer to $2,500 rather than $3,000, as it may appear more expensive in the short term."

The "gold bull market will develop into a larger bull market—gold prices are expected to rise significantly in the coming years," Spina added. "This is a multi-year bull market, so pullbacks are still an opportunity to build valuable protection in a world full of uncertainty and distrust."

He mentioned that in 3 to 4 years, a gold price of 3000 dollars will "look very cheap."

Recently, goldman sachs and ubs group also reiterated that gold will reach new highs in the next two years.

Goldman sachs predicts that by the end of next year, gold prices will climb to 3000 dollars an ounce.

However, ubs group indicated that due to the strengthening dollar and concerns that more fiscal stimulus in the usa may lead to rising interest rates, there may be a period of consolidation before gold prices begin to rise again. By the end of 2026, gold prices will further increase to 2950 dollars an ounce.