Gold prices are expected to rise more gradually in 2025 after experiencing significant gains in 2024, according to the World Gold Council (WGC). Bullion has surged by over 30% in 2024, but the pace of growth is likely to slow in the coming year due to factors like inflation, economic growth, and complex interest-rate scenarios. The WGC’s 2025 outlook report indicates that potential trade conflicts, particularly involving the United States under President-elect Donald Trump’s second term, could hinder economic growth, which may, in turn, weaken demand for gold from both investors and consumers.
The report highlights that much of the gold rally in 2024 was driven by substantial purchases from central banks, especially the People’s Bank of China and other emerging markets. The Federal Reserve’s monetary easing and rising demand for safe-haven assets during geopolitical tensions, such as conflicts in West Asia and Ukraine, further supported gold prices. However, the rally has stalled recently due to the strengthening of the U.S. dollar following Trump’s election victory.
Despite this, some banks remain optimistic about gold’s prospects. Goldman Sachs predicts the price could reach $3,000 per ounce by the end of 2025, while UBS forecasts $2,900. The WGC also emphasizes the importance of China’s role in the gold market, noting that gold price dynamics are heavily influenced by the nation’s trade, stimulus measures, and overall risk perception. Gold could see a rise if there are significant drops in interest rates or further deterioration in global geopolitical and financial conditions.
