Gold investors stay bullish for 2025 on Trump volatility fears

Money managers are seeing plenty of reasons to remain bullish on gold, following a stellar 2024 that saw the precious metal post its biggest annual gain since 2010.

Gold surged 27 per cent in 2024, hitting record highs as it soared to almost US$2,800 per ounce.

Three main factors fuelled the rally: large purchases by central banks, notably those in China and other emerging markets; the US Federal Reserve's monetary easing, which makes non-yielding gold more appealing; and gold's historical role as a safe haven amid ongoing geopolitical tensions, including wars in Ukraine and the Middle East.

Those drivers remain more or less intact going into 2025.

But investors are also bracing themselves for Donald Trump's second term and the potential impact on trade flows, inflation and the global economy. That prospect continues to spur gold buying as a way to protect wealth and hedge against potential negative shocks.

Investment diversification through bullion purchases is "a trend that will persist", said Pacific Investment Management Company portfolio manager Greg Sharenow. "We would expect that central banks and high-net-worth families will continue to find gold attractive."