Gold Rush Ahead: Top Banks Predict Prices to Soar to $3,000 by Next Year
Gold Price Expected to Rise in 2025
Major banks predict that the gold price will rise until next year 2025, with a range of around $2,700 – $3,000 per ounce. Factors from various central banks, including the US Federal Reserve (Fed), continue to lower interest rates, and gold ETFs are recovering with strong capital inflows.
“Strong demand for physical gold from China and global central banks has helped support the price of gold in the last two years. However, the inflow of capital and the establishment of ETFs that focus on retail investors will continue to be an important factor that allows the price of gold to maintain a strong level continuously during future Fed rate cut cycles,” JPMorgan analysts said.
Gold Price Increase in 2024
In 2024 alone, the price of gold has increased to almost $570/oz, or by more than 27%, making it expected that this year may be the year that gold prices rise to the highest in 14 years, since 2010, and is one of the most outstanding assets this year. The price rose to a record high of 2,639.95 dollars an ounce this past Tuesday, September 24th, and throughout this year, new records have been set many times.
“Although the price of gold has shot to new highs many times this year, and has outperformed major stock indices, we believe that gold prices still have an opportunity to increase significantly in the next 6-12 months.” Analysts from UBS Bank said and added that an important factor helping to push up the price of gold is the recovery of large inflows into ETFs after an absence since April 2022.
The Fed began easing interest rates last week by cutting interest rates by 0.50% and is expected to cut another 0.50% this year and another 1.00% by the end of the year. Gold, which is an interest-free asset, is often preferred in times of low interest rates and during periods of geopolitical turmoil.
Analysts say the US presidential election on November 5 could push gold prices up due to potential market volatility, which will push investors to turn to gold as a safe haven asset.
Target Prices for 2025
Other banks have set the following target prices for 2025:
- ANZ – 2,805 dollars per ounce, with a potential high of $2,900 by the end of next year.
- BofA – 2,750 dollars per ounce, with a potential high of $3,000.
- JPMorgan – 2,775 dollars per ounce, with a potential high of $2,850.
- Citi Research – 2,875 dollars per ounce, with a potential range of $2,800-$3,000.
- Goldman Sachs – No target price, but expected to reach $2,700 by the beginning of next year.
- UBS – No target price, but expected to reach $2,700 by the middle of next year.