Gold prices are expected to surge to $3,000 an ounce by the second quarter of 2025, according to ING analysts. The precious metal has been gaining momentum amid trade and geopolitical uncertainty.
The recent Trump administration policies have accelerated gains in gold, with prices rising to a record high of over $2,880 an ounce. Investors are seeking safe havens as fears grow over trade tensions and potential inflationary shocks to the economy.
Central-bank buying and expected Federal Reserve rate cuts will further boost gold’s price. Foreign central banks are also expected to continue their massive purchases of gold, which have exceeded 1,000 tons for the third year in a row.
ING analysts attribute the surge in gold prices to investors’ concerns over trade uncertainty and potential access to physical gold becoming more expensive due to tariffs. The financial sector is also facing shortages of gold inventories in New York, leading to a premium on Comex gold.
The World Gold Council notes that central-bank buying has continued its upward trend, with 333 tons purchased in the fourth quarter of last year. UBS has also updated its outlook on gold’s rally, raising its 12-month forecast from $2,850 an ounce to $3,000.
Source: https://markets.businessinsider.com/news/commodities/gold-price-outlook-trump-tariffs-trade-inflation-mexico-canada-1-2025-2