According to the Zhitong Finance APP, the World Gold Council (WGC) stated that after experiencing a record-high rise this year, the pace of gold price increases will slow down in 2025.

The WGC stated that gold prices have risen more than 30% so far in 2024, but next year's gains may be influenced by variables such as economic growth and inflation. The industry association stated in a 2025 outlook report released on Thursday that a potential trade war during the second term of USA President Trump and a complex interest rate outlook could affect economic growth, harming investor and Consumer demand.

The report stated: "Everyone's eyes are focused on the USA. Trump's second term may boost the local economy, but it could also provoke considerable anxiety among investors worldwide."

At the beginning of 2024, the rise in gold prices was driven by massive Bids from major central banks, particularly from China and Other Emerging Markets countries. During the intensifying geopolitical tensions, including the Middle East and the Russia-Ukraine conflict, the recent MMF easing by the Federal Reserve and safe-haven demand further propelled this trend. However, after Trump's election, the rebound of the dollar caused the increase to stagnate.

Some Banks remain Bullish about the prospects for gold next year, with the current trading price of gold close to $2,700 per ounce. Goldman Sachs expects it to reach $3,000 by the end of 2025, while UBS Group expects it to reach $2,900.

China's actions in the gold market will be closely watched. The WGC stated that so far, Chinese investors have provided price support, while Consumers remain cautious, but "these dynamics are dependent on the direct (and indirect) effects of Trade, Stimulus, and risk perception."

The association stated that if the world sees "a significant decline in interest rates or a deterioration in geopolitical or financial market conditions," Gold will rise. Low interest rates are generally favorable for Gold, as it is a non-yielding asset.

Editor/ping