Gold prices poised to test record highs in 2025 on global tensions, says ANZ By Investing.com
Investing.com– Gold is expected to retain its appeal as a safe-haven asset through 2025 as heightened political and economic uncertainty, coupled with strong central bank buying, is expected to support prices, ANZ analysts said.
While headwinds from a strong US dollar and Federal Reserve rate cuts continue, ANZ sees a moderate recovery of around 10% in the yellow metal, with prices likely to reach record levels of $2,900 per ounce next year, ANZ analysts said in a note .
Global risks—such as escalating conflicts in the Middle East and challenges posed by Trump’s trade policies—are likely to keep gold demand up, analysts said.
ANZ’s vision also highlights the role of China and India in driving demand. China’s economic stimulus measures and a fluctuating yuan are expected to increase investment demand for gold bars, coins, and ETFs. Meanwhile, India’s gold consumption should remain strong, bolstered by rising incomes and reduced import duties, with a 9% increase in jewelery demand expected, according to ANZ.
On the supply side, central banks will remain active buyers, albeit at a slower pace. ANZ predicts that annual gold purchases by central banks will be around 850 tonnes in 2025, down from 950 tonnes in 2024, as are countries like Russia, China, and India.
ANZ analysts said gold may face resistance at $2,780-$2,790 per ounce but could reach $2,900 if these levels are breached. However, the price momentum is expected to be highly dependent on the US monetary policy and the country’s development.
This strong but cautious optimism underscores gold’s role as a hedge against rising macroeconomic risks, providing a “modest glow” in the coming year.
