Gold prices climbed on Friday, January 3, driven by a softer U.S. dollar and ongoing demand for safe-haven assets, setting the metal on track for a weekly gain. Investor attention has shifted towards the proposed policy changes by U.S. President-elect Donald Trump, which are expected to shape the economic outlook and future interest rate decisions.
The price of gold reached its highest level since mid-December, as expectations of further interest rate cuts by the Federal Reserve continue to grow. This positive momentum follows a remarkable 2024 for the yellow metal, which saw its largest annual gain in 14 years. Despite a brief dip after the presidential election, gold prices rebounded strongly, finishing the year with a significant rise that outpaced the performance of the S&P 500.
Looking ahead in 2025, analysts remain optimistic about gold’s future, fueled by expectations of sustained central bank rate cuts and increased gold purchases by foreign central banks. In a recent report by Yahoo, JPMorgan analysts reaffirmed their “multi-year bullish outlook on gold” for the third year in a row, highlighting that gold is well-positioned to act as a hedge against the growing uncertainty in the global macroeconomic environment as the Trump administration takes office.
JPMorgan also forecasts gold could rise toward $3,000 per ounce in 2025. On Thursday, January 2, gold futures surged more than 1%, surpassing $2,670 an ounce, its highest level since mid-December, amid growing expectations of additional Federal Reserve rate cuts and continued bullion buying by central banks worldwide.
As global economic uncertainty persists, analysts predict that gold will remain a strong performer in 2025, continuing to benefit from the backdrop of low interest rates and central bank policies aimed at stabilizing economies.
