Gold prices expected to increase by 7% in 2025 with Trump’s return to the White House and geopolitical tensions: “Momentum is taking over”

Gold prices expected to increase by 7% in 2025 with Trump’s return to the White House and geopolitical tensions: “Momentum is taking over”
Gold prices expected to increase by 7% in 2025 with Trump’s return to the White House and geopolitical tensions: “Momentum is taking over”

Gold prices are expected to continue their upward trajectory in 2025, although their progress will be slower compared to the remarkable 27% rebound recorded last year. Analysts expect a 7% rise from current levels by the end of the year, a sign of a more moderate but steady rise.

What happened Wall Street analysts predict gold prices will reach around $2,795 per troy ounce by the end of 2025, a 7% increase from current levels, the Financial Times reported THURSDAY. This forecast follows significant purchases by central banks, which saw global institutions purchase 694 tonnes of gold in the first nine months of 2024.

Key drivers of the expected rise include the diversification of central bank holdings away from the US dollar following sanctions against Russia, anticipated interest rate cuts from the US Federal Reserve and growing concerns over US government debt. under the administration of the president-elect Donald Trump.

Henrik Marxglobal head of trading at Heraeus Precious Metals, said: “Whatever he announces will increase debt, leading to a weakening dollar and rising inflation. This is generally a good mix for gold”.

Geopolitical tensions in the Middle East and Ukraine also contribute to gold’s bullish outlook.

See also: Elon Musk: Fireworks or explosive device caused fatal Cybertruck incident at Trump Hotel in Las Vegas; the vehicle was rented

It should be noted that Goldman Sachs issued the most optimistic forecast, expecting prices to reach $3,000 per troy ounce by the end of the year. During this time, Barclays et Macquarie released more conservative projections, predicting a decline to around $2,500 per troy ounce, a 4% decline from current levels.

“It’s the dynamic taking over, combined with geopolitical tensions, that will add more fuel to the fire,” said Michael Haighhead of raw materials research at Société Générale. Haigh predicts that gold prices could reach $2,900 per troy ounce by the end of 2025.

-

Why it matters Gold’s role as a safe haven remains predominant amid global economic uncertainties and geopolitical tensions. Central banks have increasingly diversified their reserves, moving away from the dollar to mitigate risks. The World Gold Council described this year’s growth as “positive but much more modest” compared to 2024.

However, the rise of alternative assets such as Bitcoin ETFs is also reshaping the investment landscape. Investors are exploring new safe-haven options, potentially challenging gold’s dominance in this area. The interplay between traditional and emerging assets will be a crucial trend to watch in 2025.

Price movement According to Benzinga Pro, gold-backed ETFs have risen over the past year through Tuesday, December 31. SPDR Gold Shares (NYSE:GLD) rose 26.85%, iShares Gold Trust (NYSE:IAU) rose 26.85% and abrdn Physical Gold Shares ETF (NYSE:SGOL) rose 26.90%. During this time, Barrick Gold Corporation (NYSE:GOLD) fell 14.32% for the year, Newmont Corporation (NYSE:NEM) fell 10% and Royal Gold, Inc. RGLD, Inc. (NASDAQ:RGLD) rose 9%.

Also read:

Disclaimer : This content was produced in part with the assistance of Benzinga Neuro and was reviewed and published by Benzinga editors.

Image via Shutterstock

-

--

PREV Basketball: Lakers match against Wembanyama Spurs postponed due to Los Angeles fires
NEXT Match: PSG/Saint-Étienne absentees become clearer, Paris better off