Gold prices are forecast to reach a peak of $3,290 an ounce in 2025, according to the annual survey of the London Precious Metals Market Council (LBMA).
Kitco News reported that according to the LBMA report, the average world gold price in 2025 is expected to reach 2,736.69 USD/ounce, 14.7% higher than the average in 2024 (2,386.20 USD/ounce).
Although no expert has predicted an average price of more than $3,000, 20 analysts believe that gold could reach a peak price of $3,000 or more.
The forecast trading range for gold this year ranges from $2,250 (low) to $3,290 (high), with a trading range of up to $1,040. This reflects the high expectations for high volatility in the gold market in 2025.
Keisuke (Bill) Okui, an expert at Sumitomo Corp, gave the most optimistic forecast with an average price of $2,925 an ounce, while Robin Bhar of Robin Bhar Metals Consulting gave a more cautious forecast with an average of $2,500.
The three main factors affecting gold prices in 2025 are identified by experts as including the policy of the US Federal Reserve (28%), gold demand from central banks (21%), and geopolitical risks (15%).
The Fed's monetary policy plays a key role, as any move to raise or lower interest rates can directly impact the appeal of gold. If interest rates fall or the Fed maintains an accommodative stance, gold will become more attractive as an alternative investment. Conversely, tightening monetary policy can put downward pressure on gold.
Demand from central banks is also a big driver, with countries, especially emerging markets, expected to continue to accumulate gold to protect the value of their foreign exchange reserves amid heightened geopolitical uncertainty.
Gold has always maintained its status as a safe haven asset during times of uncertainty. Between February and March 2024, as conflicts in Ukraine and the Middle East escalated, the price of gold increased by 8%, from $2,045.85 to $2,214.35 per ounce.
"Geopolitical uncertainty, coupled with unpredictable policies from major leaders, especially in the US, will continue to drive central banks to buy more gold," said Grant Sporre of Bloomberg.
Chantelle Schieven of Capitalight Research predicts an average gold price of $2,875/ounce, emphasizing that the factors supporting gold prices in 2024 will continue into 2025.
Meanwhile, expert Nicky Shiels from MKS PAMP SA forecasts an average price of $2,750, with high expectations for a weakening USD and easing moves from central banks.
In 2025, gold prices will not only be a story of numbers but also reflect the great volatility of the global economic and political picture. Let's wait and see if gold can reach a new peak of $ 3,290 / ounce.
