Gold's future in 2025 will be marked by a complex interplay between economic and geopolitical risk environments and rapid technological changes.
With predictions suggesting gold prices could peak at $2,700 to $3,000 an ounce by 2025, keeping an eye on these factors will be important for anyone looking to invest in gold, according to Aksha Kamboj, vice president of the India Bullion and Jewellers Association (IBJA) and executive chairman of Aspect Global Ventures.
Meanwhile, Ms. Angelica Leicht, senior editor of the "Manage Your Money" column on CBS News, pointed out 5 reasons to invest in gold before 2025.
This is the strategic entry point after price adjustment.
After months of rising prices, gold has recently undergone a correction from its late October high of $2,716.64 an ounce to its current level of around $2,647.65. The drop in gold prices has created a rare opportunity for investors to buy gold at a relative discount.
Historical patterns show that such corrections are often accompanied by subsequent periods of sustained price increases, making this temporary price drop an attractive opportunity for those looking to buy or increase their gold holdings.
Gold offers a hedge against inflation in times of economic uncertainty
Although inflation has eased slightly, recent increases in consumer prices have raised some concerns about inflationary pressures. There is no guarantee that inflation will continue to rise, but it is still necessary to be prepared in the current economic uncertainty, which is why buying gold at this time can help.
Flexibility in portfolio
Another benefit of adding gold to your portfolio before the new year is that gold offers a high degree of flexibility in terms of buying, selling and rebalancing your portfolio. This flexibility is particularly valuable in the current market environment, where the ability to quickly adjust positions in response to market fluctuations can be crucial.
Gold demand increases
Major financial institutions and central banks have significantly increased their gold reserves over the past year to diversify their reserves and reduce their dependence on the US dollar, a trend that is expected to continue into 2025. This trend underscores the strategic importance of gold in a rapidly changing global financial landscape.
This trend also boosts demand, putting upward pressure on prices, and as institutional demand increases, the availability of physical gold may become more limited, potentially pushing prices higher.
The role of gold as a geopolitical hedge
With ongoing global tensions and looming political uncertainty, gold offers a unique form of wealth insurance. Gold is a widely accepted asset that operates independently of the traditional banking system, providing stability in times of geopolitical uncertainty when conventional financial markets may face disruption.
