DUBAI GOLD PRICE | 7 JANUARY 2025
There’s no better moment to assess the state of the market and look ahead to 2025 than at the start of the new year!
The euphoria of 2024 has not diminished, and analysts, investment banks, and specialists are laying forth their projections for gold in 2025. Physical gold’s meteoric surge in 2024 would be difficult to top, and few of last year’s forecasts even remotely predicted the more than 25% increase in price that we witnessed. The majority of experts forecast growth; therefore the outlook is still extremely good.
Here’s what two heavy hitters are saying:
J.P. Morgan
A combination of “U.S. fiscal deficit concerns, central bank reserve diversification into gold, inflationary hedging, and a fraying geopolitical landscape” forms the basis of the bank’s positive outlook. This wide range of situations demonstrates how complex the need for gold is. There are many opportunities for growth because there are so many variables affecting the price of the precious metal.
Goldman Sachs
Similarly optimistic about gold, the second-biggest investment bank in the world projects a price of $3,000 per ounce by the end of 2025. The link between gold and interest rates has been reset by central bank purchases, according to a letter sent to clients by Goldman Sachs in late October. Theoretically, since gold doesn’t pay interest and investors might find more alluring returns elsewhere, its value should decrease as interest rates climb. But even though interest rates have been high for a while, gold has kept rising. At least one factor contributing to this increase is central bank buying, which includes increased purchases by central banks in emerging markets.
Prospective gold buyers can use investment bank projections as justification for purchasing the precious metal this year, but it’s wise to conduct your own study and comprehend the rationale behind adding gold to a well-balanced portfolio.
The numerous justifications for purchasing gold in 2025 support the projections and can provide more information to supplement the large bans’ predictions!
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