Gold prices in 2025… less strong upward expectations than the current year

Gold prices witnessed an optimistic start to the week, as the yellow metal continues to rise from the support range that it began in the previous week against the backdrop of its recovery after the US presidential elections, and despite the bullish expectations that the yellow metal enjoys in 2025, analysts expect a smaller rise for it next year compared to last year. Currently, according to the City Index website.

Gold prices rebound

The global gold price witnessed a slight rise last week after it significantly reduced its gains due to the lack of clarity accompanying the future of US monetary policy, despite great expectations in the markets that the US Federal Reserve is on its way to lowering interest rates by 25 basis points during its meeting next week.
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Global gold failed to maintain its trading above the level of $2,700 per ounce during the week, which reflects a weakness in the upward momentum, so gold returned to decline and closed the week’s trading above the 50-day moving average and below the level of $2,650 per ounce, returning to a somewhat neutral area to depend in its upcoming trading on what will be issued. From the US Federal Bank.

Gold prices in 2024

This year has been huge for gold bulls with the metal gaining as much as 40% from its February lows and is currently up 28.79% on the year which says the annual gains would be the biggest since 2010 if they continue.
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Behind this, central bank and investor purchases offset a notable slowdown in consumer demand. Asian investors were almost always present, while lower yields and a weak dollar in the third quarter fueled Western investment inflows.

Buy gold as a safe haven

However, it is gold’s role as a hedging instrument amid heightened market volatility and geopolitical risks that likely explains its impressive performance.
As traders look to the future, all eyes are on what a second Trump term might mean for the global economy and investors may benefit from an early wave of inflows as a result of risks, but potential trade wars and inflationary forces could spill over into lower-than-expected economic growth.
Gold forecast in 2025
Market consensus on key macro variables such as GDP, yields and inflation points to a positive but more modest upside for gold prices in 2025.
The rise may come from stronger-than-expected demand from central banks, or from a rapid deterioration in financial conditions that leads to outflows.
Conversely, a reversal in monetary policy, leading to higher interest rates, is likely to bring challenges.