Gold’s upward momentum shows no signs of slowing, with projections suggesting a stunning peak in 2025. Bank of America predicts gold will average $2,750 per ounce next year and could climb as high as $3,000 in the latter half. Economic uncertainty and persistent geopolitical tensions fuel this golden surge, making the metal a safe-haven choice for investors worldwide.
This rally builds on gold’s exceptional 2024 performance. In the third quarter alone, prices soared by $307, one of the sharpest quarterly increases in history. Year-to-date, gold has risen by 27%, underscoring its resilience amid global chaos. Key drivers include the ongoing Middle East crisis and escalating conflicts involving Russia, which have heightened demand for secure assets.
Central banks are also driving demand, viewing gold as a reliable store of value amidst monetary instability. Falling interest rates add further momentum, as they reduce the opportunity cost of holding non-yielding assets like gold. Historically, such conditions create fertile ground for prolonged price increases.
With the precious metal’s appeal only growing, 2025 could mark a new era for gold. Investors should monitor interest rate trends and geopolitical developments closely, as these will shape the path forward. Gold isn’t just shining; it’s blazing a trail through uncertain times.
"Gold's rally could extend through 2025 on the back of falling rates and persistent central bank demand."
Goldman pic.twitter.com/iDy45U0UCH
— Win Smart, CFA (@WinfieldSmart) December 9, 2024
Sources:
https://invezz.com/news/2024/12/10/gold-still-on-track-to-hit-3000-oz-in-2025-says-bank-of-america/
https://finbold.com/why-there-are-no-signs-of-a-slowdown-for-gold-in-2025/
https://www.yahoo.com/news/m/5dd734b9-bc7e-3f71-9020-7bc018611dc1/j-p-morgan-has-been-right.html