Most banks expect gold to continue through 2025, by Reuters

(Reuters) – Major banks expect gold to extend its record price rally through 2025 on a revival of large exchange-traded fund (ETF) flows and expectations of further interest rate cuts from prominent central banks from around the world, including the US Federal Reserve.

“We reiterate our long recommendation on gold due to gradual growth from lower global interest rates, structurally higher central bank demand and gold’s hedging benefits against geopolitical, financial and recessionary risks,” Goldman Sachs said in a note.

Moderate but still significant purchases by central banks in London’s OTC market could drive about 2/3 of the expected increase in the price of gold to $2,900 per ounce in early 2025. the remaining 1/3 of the price is expected to rise, said analysts at Goldman Sachs.

Non-yielding gold has gained nearly $577 an ounce, or more than 28%, so far this year, putting it on track for its biggest annual gain since 2010 and positioning itself as one of the standout assets of 2024. The precious metal has hit a record high of $2,685.42/oz last week and has hit record highs several times this year. (EMPTY/)

“Strong physical demand from China and central banks has supported gold prices over the past two years, but investor inflows, and retail-focused ETFs in particular, continue to hold the key to further sustained growth over the coming cycle.” Fed tapering,” the analysts. at JP Morgan said in a note on September 23.

The Fed began its easing cycle on Sept. 18 with a half-percentage point interest rate cut and has forecast another 50 basis points of cuts by the end of this year and a full percentage point of cuts next year.

Zero yield bullion tends to be a preferred investment in a low interest environment and during geopolitical turmoil.

The U.S. presidential election on Nov. 5 could also boost gold prices further as potential market volatility could drive investors to safe-haven gold, analysts said.

Below is a list of the latest brokerage forecasts for gold prices in 2024 and 2025 (in dollars per ounce):

Annual brokerage/Agent prices

cy Forecasts

2024 2025

Commerzbank* $2,600 $2,600 $2,600 mid-2025

ANZ* $2,394 $2,805 $2,900 to end 2025

Macquarie $2,339 $2,463 Q1, 2025 peak of

$2,600/oz, cu

potential for a peak

towards $3,000/oz

Goldman Sachs $2,973 $2,900 of

$2,395 in early 2025

UBS – – $2,700 by mid-2025

BofA $2,365 $2,750 Gold Touch Space

$3,000/oz

JP Morgan $2,398 $2,775 $2,850

Citi Research $2,360 $2,875 Average Reference Price

projections of

$2,800-$3,000/oz in

2025

*end of period forecasts

(This story has been re-uploaded to fix the date in the dateline)