Gold Set to Shine: Record Highs Expected in 2025, ANZ Predicts

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Gold is likely to maintain its status as a safe-haven asset in 2025, driven by heightened geopolitical and economic uncertainties alongside robust central bank buying, according to ANZ analysts. 

Despite challenges from a strong U.S. dollar and anticipated Federal Reserve rate cuts, ANZ projects moderate returns of about 10% for gold, with prices potentially reaching a record high of $2,900 per ounce next year. 

Geopolitical risks, including escalating tensions in the Middle East and issues related to Trump-era trade policies, are expected to sustain gold demand. Additionally, ANZ emphasizes the significant roles of China and India in driving global demand. China's economic support measures and fluctuations in the yuan are predicted to spur investment in gold bars, coins, and ETFs. Meanwhile, India's gold consumption is projected to stay strong, supported by rising incomes and lower import duties, with jewellery demand expected to increase by 9%.

On the supply front, central banks are expected to remain active buyers, albeit at a reduced pace. ANZ forecasts central bank gold purchases at around 850 tons in 2025, down from 950 tons in 2024, as countries like Russia, China, and India continue to build their reserves.

ANZ analysts note that gold prices may encounter resistance at the $2,780–$2,790 per ounce range but could climb to $2,900 if these levels are surpassed. However, price trends will largely hinge on U.S. monetary policy and global geopolitical events.

This cautiously optimistic outlook underscores gold’s value as a hedge against increasing macroeconomic risks, offering steady, if modest, growth potential in the year ahead.

 

 

 

 

 

 

 

 

 

 

 

Paraphrasing text from "Investing.com" all rights reserved by the original author.