In 2024, gold showcased record performance, appreciating by 27% and reaching nearly $2,800 per ounce. The rally was driven by Donald Trump's electoral victory, central bank purchases, and gold's status as a safe haven amidst geopolitical instability.
Global Central Bank Purchases and 2025 Monetary Policy
Central banks, notably in China and other emerging markets, significantly influenced gold demand last year. The Federal Reserve's monetary easing made gold a more attractive asset. Darwei Kung, head of commodities at DWS Group, foresees these trends sustaining into 2025, predicting gold prices to reach $2,800 by year-end. Analysts also noted key buyers like China may increase gold purchases during local currency weakness.
Trump's Victory and its Impact on Gold and Crypto Markets
Following the November US presidential election, gold's momentum waned amid a strengthening dollar and a rallying stock market linked to Trump's win. Meanwhile, Bitcoin gained traction among investors. Trump's strategic Bitcoin reserve plans met criticism, notably from gold advocate Peter Schiff.
Goldman Sachs Adjusts Gold Price Forecast
Goldman Sachs adjusted its gold forecast, delaying the $3,000 per ounce target to mid-2026. Analysts linked this to weaker-than-expected ETF flows in December and a lower starting price for 2025. The outlook mentions reduced interventions and lower inflation potentially influencing long-term gold prices.
Amid global economic changes and geopolitical tensions, gold continues to prove its value as a reliable asset. Forecasts indicate its ongoing significance in the years ahead.
