Gold's rally in 2024 has been truly remarkable, with gold price recently reaching an all-time high of $2,790. This historic surge has sparked growing interest in how much further gold can rise in 2025, making its future price a central focus for investors.
Despite a brief pullback during the trading session on October 31, the long-term outlook for gold remains bullish, with strong momentum continuing to drive the market upward.
Looking ahead to 2025, Lina Thomas, a commodity strategist at Goldman Sachs Research, offered valuable insights into the future of gold prices. Thomas highlighted that the recent accumulation of gold by central banks likely played a significant role in driving the metal’s price growth in 2024, alongside traditional factors such as gold's relationship with interest rates.
As a non-yielding asset, gold typically loses its appeal when interest rates are high but becomes more attractive when rates fall. This trend has been evident recently, as momentum in the gold market picked up following the Federal Reserve’s first rate cut in four years, coupled with rising geopolitical tensions in the Middle East.
Thomas projects that the metal will likely reach a valuation of $3,000 per ounce by the end of next year.
According to the strategist, the upcoming United States presidential election is one key driver for this bullish outlook. She noted that the uncertainty surrounding the poll outcome might push investors toward traditional safe-haven assets like gold.
Commodity trading expert Zafar Shaikh, on the other hand, provided a technical outlook for gold. In an X post on October 31, Shaikh highlighted two critical Fibonacci extension targets at $2,797 and $3,528. The Gold price edges higher on the day. The positive picture of the precious metal prevails as the price holds above the key 100-day Exponential Moving Average (EMA) on the daily chart. Furthermore, the 14-day Relative Strength Index (RSI) stands above the 50-midline near 60.20, suggesting the support level is likely to hold rather than break.
With gold nearing the $2,797 mark, he warned there are signs of a brief pause in its upward momentum.
However, the market analyst remains optimistic, projecting that gold could surge to $3,528 in the coming year.
For now, attention remains on how the metal interacts with the $2,800 resistance; consolidation below the level could trigger potential sustained losses.
Gold (XAU/USD) is trading in positive territory on Monday, buoyed by ongoing geopolitical risks from the US presidential election and tensions in the Middle East. As a traditional safe-haven asset, gold is likely to benefit from these uncertainties in the short term. However, a rebound in demand for the US dollar and rising US bond yields could limit gold’s upside, as higher yields make non-yielding assets like gold less attractive.
Investors are closely monitoring the US presidential election, with results expected on Tuesday. Attention will then shift to the Federal Reserve's rate decision on Thursday. Given the uncertainty surrounding the election outcome, markets are speculating that the Fed may opt for a more modest 25 basis point (bps) rate cut, rather than another larger half-point easing.
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Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.
