The price of gold in 2025 could reach $3,000 per ounce, but given the overheating of the global gold market, it is unlikely to consolidate much above this level, according to experts.
"An increase in the price of gold to $3,000 from the current level would mean an increase of 14%. From a technical point of view, such a movement is quite possible. However, this does not mean that the price of the key precious metal will be able to easily hold at the level in question. This is not helped by the obvious overheating of the global gold market in 2024,“ says the stock expert “BCS World of Investments“ Vitaly Manzhos.
Gold futures ended 2024 up roughly 27%. “This is a lot for a metal that has a monetary function. Continuing to increase in value at the same pace would have no obvious fundamental basis. In the long term, gold “should“ demonstrate relative price stability,“ he added.
The growth in demand in 2024 is ensured by central banks and investors. “Gold purchased for investment purposes is not consumed. It can be returned to the market at any time. The only serious macroeconomic argument in favor of demand growth now is the nascent cycle of monetary easing by the US Federal Reserve. However, this factor is not the only decisive driver of stock market quotes“, he recalled.
Currently, gold prices may exceed 3,000 USD per ounce due to geopolitical risks and rising inflation expectations. Global geopolitical risks, the dynamics of the M2 monetary aggregate in dollars, Fed policy, the exchange rate of the Chinese yuan against the US dollar and the demand for gold from global central banks, ETFs (investment funds) and individuals will determine the price of gold in 2025.
Gold is a currency that allows you to maintain value as the money supply increases and hedge against inflation risks. “In this case, this applies to both individuals and corporate structures. We have already seen examples of issuing gold bonds. A number of companies hold significant amounts of physical gold and actually use gold as an alternative currency in their operations. In the future, we will see greater use of financial instruments linked to physical gold,“ experts say. The average price of gold in 2025 will be 2800-2900 USD per ounce.
Earlier, the World Gold Council (WGC) noted in its forecast that a positive, but more modest, increase in gold prices is expected in 2025 compared to 2024.