Heraeus Precious Metals: Gold to Extend its Record Rally Into 2025

SEATTLE (Scrap Monster): In a research note, Heraeus Precious Metals stated that it anticipates gold to continue its record run until 2025. The likelihood of a weaker dollar and expectations of additional interest rate reduction from major central banks are likely to fuel a significant increase in demand for gold.

In the upcoming year, gold prices are anticipated to range between $2,450 to $2,950 per ounce, according to Heraeus. Although at a slower rate, the central bank's gold purchases are probably going to continue. Even in 2025, the growing geopolitical threats in the Middle East and Ukraine will continue to drive up gold prices.

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If the Chinese government's stated economic stimulus measures strengthen the nation's economy, China and India should offer a strong foundation for gold demand in 2025. Notably, after a six-month break, the Chinese central bank has started buying gold again.

According to Stefan Staubach, Head of Heraeus' Precious Metals Division, the declaration by U.S. President-elect Donald Trump regarding possible increases in trade duties could also boost gold prices.

The analysis also forecasts a decline in palladium prices in 2025, a shortage in the platinum market, and a spike in industrial demand for silver.