Gold soared to all-time highs in 2024, hitting a document $2,790 per ounce in October, which is more likely to proceed subsequent yr, the consultants stated.
The robust demand for the dear metallic, one of many major safe-haven property, is anticipated to proceed subsequent yr, led by geopolitical dangers, central financial institution purchases and the U.S. Federal Reserve’s price lower cycle.
Gold ended final yr round $2,062 and was buying and selling at $2,620 as of Wednesday, a rise of 27%, whereas the efficiency of those costs marked one of the best return on gold since 2010.
Gold broke information 40 occasions yearly as whole gold demand exceeded $100 billion for the primary time within the third quarter of 2024.
Having risen to an all-time excessive in October, the ounce value ended the month at $2,743, up 4.15%.
The ongoing wars in Ukraine and Palestine, in addition to Israeli-Iranian tensions, prompted an upward development in gold demand. Political uncertainties earlier than and after the U.S. presidential election in November additionally pushed gold costs upwards, whereas robust demand in Asia contributed to the worth hikes.
Geopolitical and political uncertainties and turmoil give rise to gold costs, consultants say.
A current report by the World Gold Council stated that demand for gold rose on dangers and volatility.
Ewa Manthey, commodities strategist at ING, advised Anadolu Agency (AA) that the overall bull market outlook and safe-haven characteristic of gold and central financial institution purchases will carry gold to even increased information in 2025.
“The inflationary impact of (U.S. President-elect Donald) Trump’s policies could lead to fewer (interest) rate cuts than previously expected,” she famous.
Manthey stated that central banks continued to extend their gold reserves regardless of a slowdown within the third quarter.
“It is now looking likely that the full-year total will fall short of that seen over the previous two years. Looking ahead into next year, we expect central banks to remain buyers due to geopolitical tensions and the economic climate,” she stated.
Manthey highlighted that she expects the optimistic momentum of gold to proceed within the brief and medium time period.
“The macro backdrop will seemingly stay favorable for the dear metallic as rates of interest decline and foreign-reserve diversification continues amid geopolitical tensions, creating an ideal storm for gold,” she stated.
She emphasised that Trump’s protectionist insurance policies, tariffs and immigration management might create additional inflationary stress, limiting the Federal Reserve’s price cuts, whereas a stronger greenback and tighter financial coverage might present some resistance to gold, estimating a mean value of $2,760 per ounce subsequent yr.
Juan Carlos Artigas, international head of analysis on the World Gold Council, advised AA that international geopolitical uncertainties might present the surroundings for gold to rise additional subsequent yr.
“For gold, 2025 will be a tale of two halves. First, we may experience more risk-on appetite as we wait for strategic and tactical drivers to unravel, leading to more clarity and direction for gold’s performance later in the year,” he stated.
“This could really ring true if there is a significant drop in interest rates or a marked increase in market volatility to further fuel investor interest. We also expect global central bank demand and Asian markets to continue playing a pivotal role,” he added.
Source: www.dailysabah.com