Gold Set to Extend Record Rally into 2025, Driven by Interest Rate Cuts and Geopolitical Tensions
Gold prices could continue their record surge into 2025, with predictions ranging from $2,450 to $2,950 per ounce, according to Heraeus Precious Metals. The forecast is based on anticipated interest rate cuts by major central banks, a weaker dollar, and ongoing geopolitical risks in Ukraine and the Middle East. Central banks are expected to keep buying gold, though in smaller quantities than in 2024, and demand from China and India could further bolster prices.
Gold, traditionally a safe haven during financial and political instability, benefits from lower interest rates, which reduce the opportunity cost of holding the non-yielding asset. China`s recent resumption of gold purchases and potential economic stimulus in China may also support demand.
Heraeus also noted that silver could outperform gold in the late stages of the bull market, with expected prices between $28 and $40 per ounce, driven by strong industrial demand, particularly from the solar energy sector. Meanwhile, platinum prices are forecast to remain in a range of $850 to $1,220 per ounce, despite rising automotive and industrial demand. Palladium, however, may see a decline in prices due to reduced demand from the automotive sector as electric vehicles gain market share.
