How Will Gold Prices Change in 2025? Several Major Banks Have Provided Predictions- NAI 500
Gold is experiencing strong growth in 2024. The main factors driving gold prices upward in 2024 include three key demands: the global central bank gold rush (de-dollarization), Federal Reserve rate cuts, and safe-haven demand. Against this backdrop, the international gold price increased from $2,063.04 to a peak of $2,790 in 2024, with a year-to-date increase exceeding 35% and an overall increase of nearly 27%. According to statistics from the World Gold Council, gold prices reached more than 30 new highs in 2024.
In Tuesday’s trading, gold futures rose, bringing the annual percentage increase in gold for 2024 to its highest level since 2010. Data showed that the COMEX January gold futures closed up 0.9% on Tuesday at $2,629.20 per ounce; the cumulative increase in 2024 was 27.5%, the largest annual increase since 2010; and over the past two years, the price of gold has risen by 44.5%.
Analysts expect that the factors supporting gold prices in 2024 will continue into 2025. However, they also noted that policy resistance from the incoming Trump administration could fuel inflation and slow the pace of Federal Reserve rate cuts.
Wall Street predicts that gold will shine again in 2025. Analysts at JPMorgan Chase, Goldman Sachs, and Citigroup all set a target price of $3,000 per ounce for gold in 2025. Bank of America expects gold prices to rise nearly 13% to $3,000 per ounce next year, although that is less than half of this year’s gains.
Analysts point out that as investors become frustrated with declining yields, a portion of the $3.7 trillion held by money market funds will flow into ETFs that hold gold, which JPMorgan analyst Greg Shearer referred to as “the most bullish part of the gold cycle.” He also mentioned that another advantage of gold is that, as a store of wealth, it has little use outside of that context, and “gold does not carry the industrial baggage of other commodities, which are being weighed down by disruptions in trade.”
Citigroup noted that the increases in gold prices tend to be enduring: In five of the past six years, gold futures prices rose by at least 20%, with prices rising again in the following year, and in those five years, the average increase was over 15%.
