According to a report from Financial Associated Press on January 2 (Editor Zhao Hao), most analysts believe that gold prices will further increase in 2025, although the pace of the increase may slow compared to 2024.

Throughout 2024, spot gold prices have cumulatively risen over 27%, the last time such an annual performance occurred was in 2010, when the cumulative increase was nearly 30%.

On Thursday (January 2, 2025), during the European trading session, spot gold rose by about $10, currently reported at $2635 per ounce.

Spot gold annual line chart

According to a media survey, the average expectations of banks and refiners show that by the end of 2025, gold prices are expected to rise to around $2795 per ounce, approximately 7% higher than the price level at the end of 2024.

Regarding the reasons for the rise, analysts expect that gold will continue to benefit from global central bank purchasing action; since the outbreak of the Russia-Ukraine conflict in 2022, the USA has taken the lead in imposing multiple sanctions on Russia, and many central banks around the world have converted their dollar reserves into gold.

Throughout 2024, spot gold prices cumulatively increased by 8.28%, 4.14%, and 13.25% in the first three quarters, with a slight decline of 0.4% in the fourth quarter. Data shows that global central banks net bought 694 tons of gold in the first nine months of 2024.

Additionally, Analysts also expect that the Federal Reserve will further lower interest rates, the government debt level of President Trump in the USA will continue to rise, and the conflicts in the Middle East and between Russia and Ukraine will continue to boost Precious Metals prices; these factors have already played a role in 2024.

Michael Haigh, head of commodity research at Industrial Bank, stated that due to the increasing trend of US fiscal spending and rising geopolitical uncertainty, Trump's victory in the November election provided one of the most favorable scenarios for Gold.

Haigh stated, "Momentum is recovering, coupled with geopolitical tensions, this will add fuel to the fire," he expects Gold prices to reach $2,900 per troy ounce by the end of 2025.

Henrik Marx, global trade head of Heraeus Precious Metals, stated, "We believe that central bank interest will become a strong foundation for Bid next year." The institution predicts that Gold may reach $2,950 per ounce.

Marx added that Trump's second presidential term will support Gold prices, "Regardless of what he announces, it will increase debt, weaken the dollar, and intensify inflation. This is a Bullish combination for Gold."

The World Gold Council (WGC) also mentioned in a report that this year's growth will be "positive, just much more moderate."

In a media survey, the most optimistic forecast comes from Goldman Sachs, which expects Gold prices to reach $3,000 by the end of 2025.

The most pessimistic forecast comes from Barclays and Macquarie, which both expect Gold to drop to around $2,500 by the end of the year, about 4% lower than current levels.

Macquarie Analyst wrote in the year-end outlook, "Our fundamental forecast for 2025 is that Gold will face continued pressure from a strengthening dollar, but will be supported by improved physical Bid and stable demand from central Banks."

Editor/Rocky