2024 was a spectacular year for gold as it surged nearly 28%, touching an all-time high of $2,790. It was the strongest annual performance since 2010, when it spiked 26% in a year. The precious metal remains bullish in the charts despite investors’ confidence now shifting towards the equity and currency markets. 2025 could also be promising for gold prices as Trump’s reckless behavior could shift the funds from equities back to the precious metal.
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The US stock market indexes, S&P 500, Nasdaq, and Dow Jones hit new highs after Trump reclaimed the White House in November last year. The confidence stems from the belief that the President-elect could turn things around and make the economy boom. Nonetheless, he is a double-edged sword and could take things downhill with unruly trade policies pinned against other nations. Now that the historical data has come to an end, will gold price rally in 2025 and deliver similar results? Let’s find out!
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Commodity Market: 2025 Price Prediction For Gold
Gold prices tried to hit the $3,000 mark in 2024, but their bull run was stunted in November after Trump’s victory. They have remained hovering around the $2,500 to $2,600 level for nearly two months. However, leading investment bank Goldman Sachs published a report predicting that the price of gold could reach $3,000 in 2025.
That’s an uptick and return on investment (ROI) of approximately 12.7% from its current price of $2,662. Goldman Sachs wrote that the demand for metal in central banks would keep prices intact. In addition, the steady increase in ETF holdings as the Fed continues its easing cycle could boost gold prices in 2025.
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However, if Trump ends the wars in Russia and Ukraine and brings peace to the Middle East, gold prices could surge beyond $3,000 in 2025. The chances of that occurring remain slim, as the fire is now burning beyond control.