Many technical, geopolitical, and socioeconomic factors interact to shape the gold picture for 2025. According to analysts, the metal’s long-term fundamentals are still solid despite potential difficulties in the early months of the year.
According to Goldman Sachs Research, the Federal Reserve’s interest rate cuts and developing market central banks’ gold purchases will help the price rise to $2,700 by the beginning of next year. If worries about the US debt load increase or if the US imposes further financial restrictions, the metal might see an extra boost.
Geopolitical unpredictability, central bank purchases, and inflationary pressures all continue to reinforce gold’s position as a strategic asset in diversified portfolios, according to a note from Fawad Razaqzada, market analyst at forex.com.
This year, gold set many new records, reaching new heights. It became one of the top-performing commodities in 2024, driven up by central bank purchases, demand for safe haven assets due to geopolitical tensions, and rate-cut optimism. For the first time, gold surpassed $2,700 in October 2024 and peaked at $2,790. Then, in November 2024, Donald Trump’s resounding win in the US presidential election raised the possibility of a resurgence of inflationary pressures because of his protectionist “America First” policies.
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