Gold prices are forecast to rise further in 2025, according to Wall Street analysts. The price is expected to climb to around $2,795 per troy ounce by the end of the year, a 7% increase above current levels.
Global central banks are driving the buying of gold, diversifying away from the US dollar since sanctions were imposed on Russia in 2022. This trend is expected to continue, supporting gold prices.
Several factors are contributing to the forecasted price rise, including:
* Interest rate cuts by the US Federal Reserve
* Concerns about growing US government debt levels under President-elect Donald Trump
* Conflicts in the Middle East and Ukraine
Analysts at Goldman Sachs predict prices will reach $3,000 per troy ounce by the end of 2025. However, some banks such as Barclays and Macquarie forecast gold prices to drop to around $2,500 per troy ounce.
The World Gold Council notes that this year’s growth is expected to be “positive but much more modest” compared to last year’s bumper 27% rally. Despite the mixed forecasts, experts agree that central bank demand will support gold prices in 2025.
Source: https://www.ft.com/content/9fa96c1d-03f2-4d25-9644-b29ae19407aa