Gold likely to hit $3,000 next year, analysts predict

The 2025 gold outlook is shaped by a complex interplay of macroeconomic, geopolitical, and technical factors. While the early part of the year may present challenges, the metal's long-term fundamentals remain strong, analysts say.

- Somshankar Bandyopadhyay

Goldman Sachs Research forecasts the price will reach $2,700 by early next year, buoyed by interest rate cuts by the Federal Reserve and gold purchases by emerging market central banks.

The metal could get an additional boost if the US imposes new financial sanctions or if concerns mount about the US debt burden.

"Inflationary pressures, central bank buying, and geopolitical uncertainties continue to support gold's role as a strategic asset in diversified portfolios," Fawad Razaqzada, market analyst, forex.​com, said in a note.

Gold reached new horizons this year, creating a series of 39 record highs. It emerged as one of the best performing commodities in 2024, propelled higher by ratecut optimism, safe-haven demand from geopolitical tensions, and robust central bank purchases. In October 2024, gold soared past $2,700 for the first time and reached a peak of $2,790. Then, in November 2024, Donald Trump's decisive victory in the US presidential election brought with it the threat of a revival in inflationary pressures due to his 'America First' protectionist stance.

Cautious Fed approach