Gold had an explosive year in 2024, surging 26% in price and setting 40 new records, according to the World Gold Council. This stellar performance outpaced most other asset classes, including the U.S. stock market, positioning gold as one of the year’s top performers.
With ongoing geopolitical tensions and potential inflation from upcoming trade tariffs, experts like Joe Cavatoni, WGC’s senior market strategist, predict that gold’s performance will continue to be strong through 2025. While political instability in Europe and the Ukraine conflict remain concerns, Cavatoni believes gold will maintain its status as a safe-haven investment.
Central banks, notably in China, India, and Japan, continue to be significant buyers, further boosting demand, especially with concerns about U.S. sanctions and the dollar's fluctuating performance. As of now, gold is priced around $2,650, and analysts are forecasting it could reach $3,000 by mid-2026. Despite a decline in gold jewelry sales due to the rising price, many believe that consumers will gradually accept the new price levels.
With all eyes on the geopolitical landscape and monetary policy, 2025 could see even further growth for gold, making it a key asset for investors to watch.