Key information
- The price of gold is expected to reach $3,000 per troy ounce in 2025.
- Investor sentiment towards gold and silver is extremely positive due to concerns over global politics and sovereign debt.
- Gold surged 27.9 percent in 2024 in US dollar terms, marking its best performance since 2007.
Geopolitical tensions and economic uncertainty
Geopolitical tensions and growing concerns over government debt are expected to propel the price of gold towards $3,000 per Troy ounce in 2025, potentially surpassing its previous record highs. Despite the recent volatility caused by the Federal Reserve's hawkish stance on interest rates, gold has shown resilience, suffering only a temporary decline before finding support. This highlights gold's potential as a safe haven in times of economic uncertainty.
Investor sentiment
Investor sentiment towards gold and silver for 2025 is mostly positive, driven by concerns surrounding global politics and rising sovereign debt. The looming shadow of Donald Trump's potential return to the White House and its implications for international trade and alliances contribute to this heightened sense of risk aversion. Gold has already surged 27.9 percent in 2024 in US dollar terms, marking its strongest performance since 2007 and its 18th annual gain in the 21st century.
Market expectations and economic factors
Recent surveys by BullionVault indicate that investors strongly believe that gold will reach $3,070 per Troy ounce by the end of 2025. This optimistic outlook is reflected in the silver market, with projections showing a price of $36.90 per ounce by December 2025. This explosion in demand for precious metals can be attributed to several factors, including strong growth in China and India, increased investment by individuals and central banks, and growing recognition of the value of gold as a hedge against inflation and economic instability.
Gold Performance and Future Outlook
The year 2024 has proven to be particularly successful for gold, outperforming all other asset classes, even that of the US stock market. As investors face escalating geopolitical risks and macroeconomic uncertainties, gold is expected to retain its safe-haven appeal, and could reach new highs in 2025. According to experts, factors such as trade relations between the United States and China, the strength of the American economy, monetary policy decisions in major economies like Japan and the United Kingdom, and persistent demand from central banks will all play a role in the trajectory of gold during 2025.
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