Gold Prices Expected To Soar As Macquarie Forecasts 2025

SEATTLE (Scrap Monster): Analysts predict record highs for gold amid market shifts and renewed demand

Macquarie Group Ltd. analysts are predicting strong tailwinds for gold prices as they look toward 2025, with expectations of the precious metal potentially reaching record heights. The latest predictions situate gold prices between $2,650 and $3,000 per ounce, signaling significant bullish sentiment among market analysts.

This anticipated surge follows gold's impressive performance over the past year. The commodity has rallied approximately 28%, buoyed by factors such as increasing central bank purchases, renewed interest in exchange-traded funds (ETFs) backed by gold, and the Federal Reserve's shift toward lower interest rates. According to Macquarie, central banks will likely continue this upward trend by adding more bullion to their reserves, especially as geopolitical tensions persist.

Despite the optimism, the analysts caution investors to prepare for some bumps along the way. They predict the first quarter of 2025 could see gold under pressure, mainly due to the strengthening US dollar. Yet, after this potential short-term downturn, they believe gold will rebound sharply.

Particularly compelling is the scenario surrounding China. Should the demand from this massive market increase, analysts believe it could quickly inject life back to gold pricing. Reports suggest the US fiscal outlook may take another hit as the policies of President-elect Donald Trump take shape, leading to renewed interest from speculators and investors alike.

Indeed, Macquarie’s earlier forecasts were adjusted upwards; for the first quarter, they're now targeting prices to average $2,650 per ounce, which is about 1.9% higher than previous estimates. The outlook gets even rosier from April to June, with average price predictions climbing to $2,800 per ounce, about 12% higher than what was anticipated earlier. This shift implies gold not only retains its allure but could attract buy-in from investors seeking refuge from lower-yielding savings products.

Importantly, the current ETF holdings are still significantly below their peak levels from 2020, remaining about 25% lower. This suggests to analysts at Macquarie and others, including industry giants like Goldman Sachs and UBS, ample opportunities for increased buying activity if conditions remain favorable.

The broader investment picture mirrors the current sentiment of gold market enthusiasts, who see significant upside potential. Fabien Penone, head of financial markets research at Macquarie, emphasized how investor interest is likely to surge, particularly as tensions flare globally. “We see falling interest rates as key,” he commented, highlighting how this trend could bolster appeal for gold as it becomes more attractive compared to traditional savings avenues.

On the macroeconomic front, factors such as inflationary pressures, currency fluctuations, and geopolitical instability are likely to play pivotal roles as investors maneuver through the turbulent global economy. Macquarie’s forecast certainly indicates the team is bullish about gold’s role as both a hedge and an investment opportunity within this framework.

One cannot overlook the potential impact of shifting economic policies as nations, especially major economies like the US and China, navigate their respective recoveries. Macquarie’s analysis reflects this sentiment, with caution about potential short-term challenges yet optimism for mid to long-term gains.

The gold market outlook for 2025 will undoubtedly be influenced by these dynamics, with investors keeping their fingers on the pulse and watching for signs of change. With those developments on the horizon, Macquarie’s golden predictions certainly stand to attract attention from analysts and investors eager to capitalize on the next big upward swing.

Overall, Macquarie's analysts are optimistic about gold hitting $3,000 per ounce, especially if geopolitical factors come to play substantial roles. This speculation is colored by the current inflationary environment paired with potential shifts stemming from government policies.

With gold still considered one of the safest investments during uncertain times, the market will likely remain volatile, but Macquarie stands firmly behind its bullish forecast. Investors interested in gold should stay informed and ready to navigate this diamond-in-the-rough scenario as it continues to unfurl through 2025 and beyond.

Courtesy: www.evrimagaci.org