Gold Prices Set to Shatter Records in 2025
Robust Demand Amid Global Uncertainty and Inflation Concerns
Gold prices are poised to reach unprecedented heights by 2025, according to a recent poll of analysts and traders. The median forecast predicts a price of $2,756 per troy ounce, eclipsing the $2,674 projected in a previous poll.
Despite a strong dollar and reduced expectations of Federal Reserve rate cuts, heightened economic uncertainty and inflation concerns stemming from US President Donald Trump's second term are fueling demand for gold. Spot gold prices hit a record high of $2,790.15 in October and remain near $2,742.
Exceptional Performance in 2024
Gold's impressive 27% price surge in 2024, its strongest since 2010, cemented its status as a top-performing asset. Investors sought refuge in gold against global risks and the Federal Reserve's aggressive interest rate cuts.
Bullish Outlook for 2025
"Geopolitical risks simmering in various hotspots exacerbate inflationary risks and bolster safe-haven demand for gold," said independent analyst Robin Bhar.
Uncertainty surrounding Trump's trade tariffs and concerns about their inflationary impact continue to support gold prices. "Record gold prices will benefit some bullion market sectors while challenging others," noted independent analyst Ross Norman.
He anticipates reduced jewelry demand in price-sensitive Asian regions, while central banks and speculative interests are expected to remain keen buyers.
Silver Deficit Remains, Demand Challenges
Silver prices are predicted to benefit from robust industrial demand, particularly in clean energy sectors. However, lackluster investment demand from exchange-traded funds (ETFs) and potential tariff impacts on global growth could temper price increases.
"The silver market is likely to maintain a supply deficit in 2025," said Standard Chartered analyst Suki Cooper. "However, investment demand has underperformed recently, limiting price upside potential."
The poll forecasts an average silver price of $33.10 per ounce, lower than previous estimates but still above current levels.