Volatility is what characterized the gold market in 2024. What will happen next in 2025? Caution against overly positive forecasts Although gold prices corrected in the final two months of 2024, dropping from a peak of nearly US$2,800 to around US$2,600 per ounce, the international spot gold market still achieved remarkable returns. With a 27% price increase, 2024 marked the strongest year for gold in the past decade. Escalating geopolitical tensions and expectations of a return to looser monetary policies by central banks funneled capital into this safe-haven asset. As we look to 2025, forecasts for the gold market remain broadly optimistic, reflecting its long-term upward trajectory. Longforecast.com projects that gold prices could reach US$3,000 per ounce by mid-2025. This target aligns with expectations from major financial institutions, including JPMorgan, Bank of America, Goldman Sachs, and Citigroup. According to UOB, the strengthening U.S. dollar is prompting short-term gold accumulation. However, the precious metal is expected to regain momentum in 2025, potentially reaching the US$3,000/ounce mark. Long-term demand for gold as a safe-haven investment is likely to remain robust, fueled by heightened geopolitical and economic risks tied to Donald Trump’s second term as President of the United States. Capital Economics offers […]
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