Gold likely to continue bull run next year, says experts
MOSCOW-Anadolu Agency
Gold soared to all-time highs in 2024, hitting a record $2,790 per ounce in October, with strong demand for the precious metal expected to continue next year as one of the main safe-haven assets, led by geopolitical risks, central bank purchases and the U.S. Federal Reserve’s rate cut cycle.
Gold ended last year around $2,062 and was trading at $2,620 as of Dec. 25, an increase of 27 percent, while the performance of these prices marked the best return on gold since 2010.
Gold broke records 40 times on an annual basis as total gold demand exceeded $100 billion for the first time in the third quarter of 2024.
Geopolitical and political uncertainties and turmoil give rise to gold prices, experts say.
Ewa Manthey, commodities strategist at ING, told Anadolu that the general bull market outlook and safe-haven feature of gold and central bank purchases will carry gold to even higher records in 2025.
“The inflationary impact of [US President-elect Donald] Trump’s policies could lead to fewer [interest] rate cuts than previously expected,” she noted.
Manthey highlighted that she expects the positive momentum of gold to continue in the short and medium term.
Juan Carlos Artigas, global head of research at the World Gold Council, told Anadolu that global geopolitical uncertainties could provide the environment for gold to rise further next year.
“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 said.
“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.
