According to Wall Street Banks, Gold is Set to Soar This Year - FT
According to Wall Street analysts, gold prices are expected to rise further in 2025, but the pace of gains will slow following last year's remarkable 27% increase. Based on the average forecasts of banks and refiners participating in a Financial Times survey, gold is expected to climb to approximately $2,795 per troy ounce by the end of the year.
Gold is anticipated to continue benefiting from the purchases of global central banks that have moved away from the dollar since the U.S. imposed sanctions on Russia following its full-scale invasion of Ukraine in 2022. The Federal Reserve's interest rate cuts, concerns over rising debt levels under the administration of former President Donald Trump, and conflicts in the Middle East and Ukraine are also expected to drive prices higher.
Factors like these were behind gold's largest annual gain since 2010. Henrik Marx, global trade head of Heraeus Precious Metals, predicts that gold could reach $2,950 per troy ounce this year, stating, "We believe that central bank interest will provide a strong foundation for purchases next year."
Marx also noted that Trump's second presidential term could be supportive for gold prices, saying, "Everything he announces will increase the debt, which leads to a weaker dollar and rising inflation. This is usually a good mix for gold."
The World Gold Council reported that growth this year will be "positive but much more modest." Among the participants in the survey, the most bullish call came from Goldman Sachs, which expects prices to reach $3,000 by the end of 2025, citing central bank demand and anticipated Fed interest rate cuts.
The most bearish forecasts came from Barclays and Macquarie, both expecting gold to decline to about $2,500 per troy ounce by year-end — about a 4% drop from current levels. Macquarie analysts wrote in their year-end outlook, "Our base scenario through 2025 is that gold will initially remain under pressure from a strong U.S. dollar, but will be supported by improving physical demand and steady official sector demand."