The World Gold Council’s outlook for gold in 2025 suggests that the precious metal is likely to remain rangebound, barring any unforeseen developments. The report highlights that a combination of higher interest rates and lower economic growth could have a negative impact on gold, particularly in Asia. Conversely, lower interest rates or geopolitical and financial market turmoil could boost gold’s performance.
The report identifies four key drivers that will influence gold’s price performance in 2025: economic expansion, risk, opportunity cost, and momentum. It emphasizes the importance of understanding these factors in order to predict gold’s movement accurately. The report also mentions that the actions of the US Federal Reserve and the strength of the US dollar will continue to play a significant role in shaping gold’s performance.
The report also discusses the potential impact of US President Donald Trump’s second term on the global economy. While his pro-business agenda may boost sentiment among domestic investors and consumers, it could also lead to inflationary pressures and disruptions in supply chains. This uncertainty might prompt investors to hedge their risks by investing in gold.
In terms of Asian demand for gold, China and India are highlighted as the largest markets. The report notes that economic growth and government stimuli will play a crucial role in determining consumer demand for gold in these countries. It also mentions that central bank purchases will remain an important factor in the gold market, with the expectation that central banks will continue to be net buyers of the precious metal in 2025.
Overall, the World Gold Council’s outlook for gold in 2025 suggests a nuanced and complex picture for the yellow metal. While the report points to a rangebound outlook, it also highlights several factors that could potentially impact gold’s performance in the coming year. Investors and stakeholders in the gold market will need to carefully monitor these factors and stay informed about the latest developments to make informed decisions.