Analysts expect an ounce of gold to exceed $2,700 per ounce at this time

The global gold market recorded its best performance in more than a decade last year, 2024, which led analysts to expect continued rise and upward momentum, likely until gold reaches $2,700 per ounce at the end of the first quarter of 2025, driven by multiple bullish factors, according to what The Global Times reported.

Central banks’ purchases of gold

Central banks in particular are expected to be dominant buyers of gold markets as they seek to diversify their reserves amid an increasingly complex global environment.
After breaking the $2,000 per ounce mark at the beginning of 2024, gold prices recorded a series of record highs, briefly surpassing $2,700.
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2025 and gold markets

In the first week of 2025, gold prices remain strong and hover above $2,600 per ounce.
Investment banks issued bullish forecasts for gold, providing optimistic forecasts.
Under a neutral assumption, the price of gold futures on exchanges could rise to $3,175 per ounce by mid-2025 with prices expected to fluctuate between $3,000 and $3,250 per ounce throughout the year, CITIC economists said.
JP Morgan analysts expected that gold prices would continue to rise and may reach $3,000 per ounce in 2025, especially if US economic policies become “more disturbing” to the market.

World Gold Council forecasts

The World Gold Council (WGC) forecast a moderate and positive growth outlook for gold prices in 2025. The World Gold Council’s report on the gold outlook 2025 stated: “The rise may come from stronger-than-expected demand from central banks or from a rapid deterioration of financial conditions, which leads to to flows to safe havens.
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Investing in gold

According to analysts, global investment in gold is expected to remain strong in 2025, perhaps with “Asia declining while Europe and the United States rise.”
At the beginning of 2024, Asian investors were the most prominent gold purchasers but as the outlook for the Chinese economy improves, market demand may wane.
However, with weaker economic growth prospects in Europe and the more direct influence of European and US investors on gold pricing, increased demand from Europe may help push gold prices higher this year,” Meng explained.

The impact of the US economy on gold

In 2025, US economic growth is expected to slow from the previous year and the labor market may weaken. However, inflationary easing is expected to stop, which may create more inflationary pressures.
“The US Federal Reserve will face a delicate balance between stabilizing economic growth and fighting inflation,” said Xu Ying, chief macroeconomic strategist at Orient Futures.

Accumulating gold reserves

Gold reserves remain vital for countries diversifying their international reserves. Among central banks around the world, China, Poland, Singapore and others have led gold purchases in recent years.
In 2023, central banks added 1,037 tons of gold – the second-highest annual purchases in history – after a record high of 1,082 tons in 2022.
World Gold Council data showed that in the third quarter of 2024, Poland added 42.33 tons of gold, followed by Hungary, 15.52 tons, and India, 12.88 tons.