The gold market is having its best start to the year since 2023 and is on track for its strongest monthly performance since September 2024, when the world gold price on January 26 climbed to 2,770 USD/ounce.
Kitco News said that a strong start to January could signal another golden year for the precious metal, even after gold prices increased by about 27% last year.
In his 2025 outlook report, Eric Strand, founder of the precious metals company AuAg Funds, said he expects gold prices to surpass $3,000/ounce this year.
"We predict gold will break $3,000 this year and are likely to end the year at another level, expected at $3,300/ounce, up 20% from current prices, Eric Strand said.
According to Strand, the new administration of US President Donald Trump could open a new era of easier government stimulus and monetary policy.
"Both President Donald Trump and billionaire Elon Musk are building their empire with loans, a lot of loans, while continuing to move forward," Strand said in his report.
"This could be the scenario for the next four years. Avoid 'broken assets' at all costs to create a positive 'explosion'. The price to pay for this will be currency inflation. The explosion of inflation creates a financial environment where commodity prices, including gold prices, increase significantly" - the expert commented.
While the US government debt has risen to historical levels, now over $36 trillion, Strand noted that the US is not alone. He stressed that governments around the world continue to have spending deficits.
"The amount of money in the system is increasing without really creating much growth, which means that each currency unit becomes less valuable," he said.
These comments were made as gold prices continued to trade near record highs against major currencies including the euro, the British pound, the yuan, the Canadian dollar and the Australian dollar.
Gold remains an attractive safe global currency as the trend of de- globilization accelerates and countries diversify away from the US dollar.
We have seen the beginning of the de- globilization process, which seems to be on the rise, especially now that the US is seeking to impose conditions that are beneficial to itself. America First policies and high tariffs may provide certain advantages for the US, but they also harm confidence in a country that should have taken the lead by setting an example in free-market economies. This new phenomenon is likely to increase inflationary pressures and could create a wave of devaluations in other countries to offset the impact of tariffs," Strand said.
Florian Grummes, a German financial analyst with 10 years of experience in the precious metals sector, believes that gold will increase in price further in 2025.
The Jerusalem Post reported that in a recent interview with media channel Soar Financially, Grummes expressed confidence in gold's upward trajectory, predicting that gold prices could reach $3,100/ounce. According to him, this upward prospect is due to strong demand for gold, especially from China and other emerging markets.
