Will gold hit $3,000 in 2025? or unlikely?
Historic rally of gold seems far from over; however, many analysts are warning investors to temper their bullish enthusiasm, at least during the first half of the year. Some analysts expect gold prices to hit $3,000 an ounce, but the rally is not expected to materialize until the second half of 2025.
The gold market is in a wait-and-see mode as investors try to gauge the health of the economy as it battles stubborn inflation. At the same time, markets are trying to weigh geopolitical risks and uncertainty as President-elect Donald Trump prepares to take the reins of government.
An analyst sees gold prices trading between $2,500 and $2,800 an ounce in the first half of 2025. However, he predicts a rally in the second half of the year, pushing prices above $3,000 an ounce. Bank of America is also expecting gold prices to consolidate through the first half of 2025, even as it sees prices pushing above $3,000.
Commodity analysts at America’s second-largest bank said in their outlook report that gold faces significant headwinds, in part because Western investors will have to contend with potentially higher bond yields and a stronger U.S. dollar.
The Trump administration will, in all likelihood, push through a policy mix that, through stronger growth, higher inflation, higher rates, and a stronger USD, might well limit the appetite of investors to increase gold purchases in the near term.
Although central banks have slowed their gold buying in recent months, they continue to be net buyers, and that trend is expected to remain firmly in place through 2025. At the same time, weak global economic growth, the threat of higher inflation, and geopolitical instability will further support consumer demand, specifically in emerging markets, according to some analysts.
