Gold Prices Set for Record-Breaking 2025

By Anushree Mukherjee

Gold prices are anticipated to soar in 2025, driven by economic uncertainty and inflation concerns under U.S. President Donald Trump’s second term. Despite a strong dollar and reduced expectations for Federal Reserve rate cuts, demand for gold remains robust.

A poll of 36 analysts and traders forecasts a median price of $2,756 per troy ounce in 2025, an increase from the previous estimate of $2,674.

Spot gold reached a record high of $2,790.15 in late October and stood at $2,742 recently, with the average price in 2024 being $2,386.

Gold’s remarkable 27% rise in 2024 marked its strongest performance since 2010, as investors turned to the metal as a hedge against global risks amidst three interest rate cuts by the U.S. Federal Reserve.

Independent analyst Robin Bhar noted, “Geopolitical risks continue to bubble in various hot spots, adding to inflationary risks and safe-haven demand for gold.”

Gold experienced a retreat from November into December due to a post-election selloff and the Fed’s diminished rate-cut projections for 2025. However, recent uncertainty over Trump’s U.S. import tariff threats has renewed interest in gold as a protective asset.

Analyst Ross Norman remarked, “With record gold prices foreseen, some sectors in the bullion market will benefit while others struggle.” Jewelry demand may face challenges in price-sensitive regions of Asia, whereas central banks and speculators are likely to continue their interest in gold.

Silver to Remain in Deficit

Silver is expected to benefit from strong industrial demand, particularly in green technologies and renewable energy. However, the lack of investment demand from exchange-traded funds (ETFs) and potential tariff impacts on global growth could pose challenges for silver prices.

Standard Chartered analyst Suki Cooper stated, “The silver market is set to remain undersupplied in 2025, but a deficit alone will not be sufficient to drive price increases.”

The poll predicts silver prices will average $33.10 per ounce in 2025, slightly lower than the previous estimate of $33.75, but above the current price of $30.20.