Gold prices could rise 20%, breaking the 3,300 USD peak this year

Gold prices are off to their best start since 2023 and are on track for their strongest monthly gain since September, when prices tested new highs.

In his 2025 outlook report, Eric Strand, founder of precious metals company AuAg Funds, predicted that gold prices will surpass 3,000 USD/ounce this year.

“We expect gold to break 3,000 USD an ounce during the year and could end higher, with a realistic target of 3,300 USD an ounce,” he said.

Strand's bullish price represents a 20% increase from current levels. Strand believes the new Trump administration could usher in a new era of economic stimulus and loose monetary policy.

“Both Donald Trump and Elon Musk have built their careers on massive borrowing and bold strategies. In the next four years, the same situation may occur: The government will do everything possible to avoid crises and promote growth. However, this will lead to monetary inflation. Strong inflation will create a financial environment that pushes up commodity prices, including gold,” Strand said.

While the US government debt has grown to record levels, now above 36 trillion USD, Strand noted that the US is not alone. He stressed that governments around the world continue to run deficits.

“The amount of money in the economy is increasing, but the real growth is negligible. This makes the value of each currency decrease,” he said.

The comments came as gold prices continued to trade near record highs against major currencies such as the euro, pound, yuan, Canadian dollar and Australian dollar.

Gold remains an attractive global safe-haven currency as deglobalization increases and countries diversify away from the US dollar.

“We have seen the beginnings of deglobalization, which appears to be accelerating, particularly as the United States seeks to impose conditions that are favorable to itself. ‘America First’ policies and high tariffs may have some advantages for the United States, but they have also damaged confidence in a country that should lead by example in free-market economics,” Strand said. “This new phenomenon is likely to fuel inflationary pressures and potentially create a wave of devaluations in other countries to offset the tariffs.”

While gold looks poised to shine in the new year, Strand also recommends investors pay more attention to the struggling gold mining industry.

He noted that gold miners are not only historically undervalued relative to the price of gold, but are also in better financial shape as they continue to improve their balance sheets and control spending.

“The rising price of gold, generating more revenue in USD while costs remain unchanged, will significantly boost the profits of gold mining companies. This could make the gold mining industry one of the strongest sectors in the stock market by 2025,” Strand said.