According to a recent report by the United Kingdom's Financial Times, Wall Street Analysts suggest that Gold prices will further rise in 2025. However, after a surge of 27% last year, the pace of Gold price increases may slow down.

(Screenshot source: Financial Times, United Kingdom)

Based on average forecasts from Banks and refiners surveyed by the United Kingdom's Financial Times, Gold prices are expected to climb to around $2795 per ounce by the end of 2025. This is about 6% higher than current levels.

Gold is expected to continue benefiting from Global central bank Bids. Since the USA imposed sanctions on Russia after the outbreak of the Russia-Ukraine war in 2022, Global central banks have been reducing their reliance on the US dollar and diversifying their Assets.

The Federal Reserve's interest rate cuts, concerns about rising debt levels under President Donald Trump's administration, and conflicts in the Middle East and Ukraine are also expected to drive up Gold prices. These factors contributed to the largest annual increase in Gold prices since 2010 last year.

Henrik Marx, the global trading head of Heraeus Precious Metals, stated: "We believe that the central banks’ interest rates will be a strong foundation for next year’s Bid."

Heraeus predicts that this year, Gold prices could reach a peak of $2950 per ounce.

Marx added that Trump's second presidential term may also support Gold prices. "Whatever Trump announces will increase debt, lead to the depreciation of the dollar and intensify inflation. This is usually a combination of Bullish factors for Gold."

The World Gold Council stated in a report that Gold prices will rise this year, but the increase will be much more moderate.

The most Bullish forecast in the UK's Financial Times survey comes from Goldman Sachs, which expects Gold prices to reach $3000 per ounce by the end of 2025. Goldman Sachs cited central bank demand and expectations of Federal Reserve interest rate cuts.

The most Bearish forecasts come from Barclays and Macquarie, both of which expect Gold prices to fall to around $2500 per ounce by the end of this year.

Macquarie Analysts wrote in their 2024 year-end outlook: "Our basic prediction for 2025 is that Gold will initially face ongoing pressure from a stronger dollar, but will be supported by increased physical purchases and stable demand from the official sector."

Global central banks bought 694 tons of Gold in the first nine months of 2024. The People's Bank of China announced last November that it would resume Gold purchases after a six-month interruption.

The decline in US interest rates contributed to the rebound in Gold in the second half of last year, and further interest rate cuts may be crucial for the outlook of Gold. After the Federal Reserve cut interest rates last December but indicated that the pace of declines in borrowing costs would be slower than previously expected in 2025, Gold prices fell slightly.

Because Gold is a non-yielding asset, it typically benefits from lower interest rates, as the opportunity cost of holding Gold is lower.

Michael Haigh, the Head of Commodity Research at Société Générale, stated that Trump's victory in last November's election provided one of the most favorable outlooks for Gold, as USA fiscal spending might increase and geopolitical uncertainties rise.

Haigh expects Gold prices to rise to $2,900 per ounce by the end of 2025.

As of 09:35 Beijing time, spot Gold is quoted at $2,643.90 per ounce.