The gold market is off to its best start to a year since 2023 and is on track for its strongest monthly performance since September 2024, as global gold prices climbed to $2,770 an ounce on January 26.
A strong start to January could signal another golden year for the precious metal, even after gold prices rose about 27% last year, Kitco News said.
In his 2025 outlook report, Eric Strand, founder of precious metals firm AuAg Funds, stated that he expects gold prices to surpass $3,000 an ounce this year.
"We expect gold prices to break $3,000 this year and potentially end the year even higher, with an expected $3,300/ounce, a 20% increase from current prices," said Eric Strand.
According to expert Strand, the new administration of US President Donald Trump could usher in a new era of government stimulus measures and easier monetary policy.
“Both President Donald Trump and billionaire Elon Musk built their empires on loans, lots of loans, while still moving forward,” Strand said in his report.
"This is likely to be the scenario for the next four years. Avoid 'bankruptcy' at all costs to create a positive 'boom'. The price to pay for this will be monetary inflation. An inflationary boom creates a financial environment in which commodity prices, including gold prices, increase significantly," the expert said.
While the US government debt has grown to historic levels, now above $36 trillion, Strand noted that the US is not alone. He stressed that governments around the world continue to run deficit spending.
“The amount of money in the system is increasing without creating much real growth, which means each unit of currency is becoming less valuable,” he said.
The comments came as gold prices continued to trade near record highs against major currencies including the euro, pound, yuan, Canadian and Australian dollars.
Gold remains an attractive global safe-haven currency as deglobalization accelerates and countries diversify away from the US dollar.
“We have seen the beginnings of a process of deglobalization, which seems to be accelerating, especially now as the US seeks to impose conditions that are favorable to itself. ‘America First’ policies and high tariffs may bring certain advantages to the US, but they also damage confidence in a country that should lead by example in free market economies. This new phenomenon is likely to increase inflationary pressures and may 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.
In a recent interview with Soar Financially, Grummes expressed confidence in gold’s upward trajectory, predicting that the price of gold could reach $3,100 an ounce, according to the Jerusalem Post. He attributed the bullish outlook to strong demand for gold, especially from China and other emerging markets.
