A complex interaction of technical, geopolitical, and socioeconomic factors shapes the gold picture for 2025. According to analysts, the metal’s long-term fundamentals are still sound, despite potential difficulties in the early months of the year.
With the Federal Reserve lowering interest rates and emerging market central banks buying gold, Goldman Sachs Research predicts the price will hit $2,700 by the beginning of next year. If the US imposes further financial restrictions or worries about the US debt load increase, the metal might get an additional boost.
Gold’s position as a strategic asset in diversified portfolios is still supported by inflationary pressures, central bank purchases, and geopolitical uncertainty, according to a report from Fawad Razaqzada, market analyst at forex.com.
This year, gold achieved 39 record highs, setting new records. Due to strong central bank purchases, demand for safe haven assets amid geopolitical concerns, and rate-cut confidence, it became one of the best-performing commodities in 2024. Gold first surged beyond $2,700 in October 2024, and it peaked at $2,790. Then, because of his “America First” protectionist policies, Donald Trump’s resounding win in the US presidential election in November 2024 raised the possibility of a resurgence in inflationary pressures.
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