The World Gold Council (WGC) anticipates a slowdown in gold price increases by 2025 after a record surge this year. In 2024, gold prices have risen over 30%, but future gains may be influenced by economic growth and inflation. The WGC's 2025 outlook report highlights potential trade wars and complex interest rate scenarios during President Trump's second term, which could impact economic growth and demand.
Early 2024 saw gold prices rise due to heavy buying by central banks, especially from China and other emerging markets. Geopolitical tensions and recent Federal Reserve monetary easing further supported this trend. However, the dollar's rebound post-Trump election stalled the increase.
Gold currently trades near $2,700 per ounce. Goldman Sachs predicts $3,000 by 2025 end, while UBS forecasts $2,900. China's market actions are under close watch, with potential shifts based on trade, stimulus, and risk perceptions.
Low interest rates generally benefit gold, as it is a non-yielding asset.
