Macquarie Group Predicts Gold Prices Will Surge Next Year

According to Macquarie Group Ltd, as the Federal Reserve lowers interest rates and central banks add gold bullion to their reserves, gold is expected to rise further next year, potentially reaching record highs. Analysts, including Marcus Garvey, noted in a report where they raised their price forecasts that the precious metal could face challenges in the first quarter of 2025 due to a strengthening U.S. dollar but could increase its gains thereafter. They mentioned that if demand from China rises or if President-elect Donald Trump's policies pose a risk of deteriorating the U.S. financial outlook, gold could "rapidly challenge" $3,000 per ounce.

Macquarie stated that prices are expected to average $2,650 per ounce in the first quarter of 2025, up 1.9% from a previous forecast. From April to June, the average is projected to be $2,800, which is 12% higher than the last forecast, after which the metal may lose some of its allure. Currently, gold is trading at $2,646.61, down 0.13% from yesterday.