The price of gold could continue to rise in 2025, according to estimates by Heraeus Precious Metals, due to a scenario marked by a weak dollar, new interest rate cuts globally and the intensification of geopolitical conflicts.
According to the analyst firm, gold prices would be “between $2,450 and $2,950 per ounce in 2025, influenced by the continuation of purchases by the main central banks, although in smaller quantities than in 2024, and geopolitical risks in Ukraine and the Middle East.”
The precious metal is known to be used as a safe store of value in times of political and financial uncertainty. Therefore, its value tends to increase “in the face of expectations of lower interest rates, which reduce the opportunity cost of holding this non-yielding asset.”
In 2025, the Chinese government may implement economic stimulus measures, so that together with India it could boost demand for gold. In fact, the Chinese central bank resumed buying gold for its reserves in November after a six-month break.
On the other hand, the uncertainty regarding trade and taxes generated by the return of Donald Trump to the presidency of the United States is a key factor in the increase in the price of gold, according to Steffen Metzger and Stefan Staubach, from the precious metals division of Heraeus.
Gold has risen more than 29 % this year and is on track for its best annual performance since 2010, driven by central bank interest rate cuts and rising geopolitical tensions.
M.Pino
Source: marketscteener
(Reference image source: Scottsdale Mint on Unsplash)
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