Gold surged 25.5% in 2024, outperforming all major asset classes. As 2025 begins, the World Gold Council’s latest Gold Outlook highlights a pivotal year influenced by shifting monetary policies and global uncertainties.
A potential 100-basis-point rate cut in the US could make gold more attractive as bond yields fall. However, rising geopolitical tensions or persistent inflation could further strengthen gold’s appeal as a safe-haven asset.
Central banks, net buyers of gold for nearly 15 years, contributed to a 7-10% price increase in 2024 by sustaining annual purchases above 500 tonnes. A drop below this level could apply downward pressure on prices.
Will gold extend its gains in 2025? Investors will closely monitor central banks and economic shifts as the metal continues to serve as an investment and a hedge against uncertainty.
