Cryptocurrency exchange Bybit has released a new report emphasizing the macroeconomic and geopolitical trends contributing to rising gold prices.
Macroeconomic Factors
According to the report, inflation is expected to remain above 2%, reinforcing gold’s role as a hedge against currency devaluation. The anticipated Federal Reserve rate cuts could further boost demand, as lower real interest rates make gold more appealing compared to fixed-income assets.
Geopolitical Uncertainty
Ongoing conflicts and global instability are enhancing gold’s allure as a safe-haven asset. Historically, gold has performed well during periods of geopolitical stress, and this trend is expected to continue.
Central Bank Accumulation
Central banks purchased over 1,000 metric tons of gold in 2024, a trend driven by countries like China and Russia diversifying away from the U.S. dollar. This steady accumulation supports gold prices and limits downside risks.
The Bybit report indicates gold remains a resilient asset amid inflation, central bank demand, and geopolitical instability, potentially leading to higher prices by 2025.
