Gold investors keep their optimism in 2025, and this is the expected price

Money managers see many reasons that make them cling to their optimism about gold, after a special year in 2024, the precious metal was achieved for its biggest annual profits since 2010. Gold jumped by 27% last year, with record levels as it reached about 2800 per grams. Three important factors that support this increase are: major purchases of central banks, especially in China and other emerging markets; Critical facilitation by the Federal Reserve that makes the gold -generated gold more attractive; And the role of historical gold as a safe haven amid continuous geopolitical tension, including wars in Ukraine and the Middle East. Gold motifs The list of these three engines still lasts somehow with our entry until 2025. But investors are also awaiting the potential impact of Donald Trump’s second state on commercial flow, inflation and global economy. This effect still stimulates the purchase of gold as a way to protect wealth and hedging from possible negative shocks. “The diversification of investments by buying alloys is a trend that will continue. We expect central banks and families with high wealth to gold as an attractive choice,” says Greg Sharino, a portfolio manager at Pacific Investment Management. Of the most optimistic of the rise of gold, the US hedge box, “Quantix Commodities”, which maintains 30% of its origin in gold, which is almost twice the weight of the metal in the Bloomberg Commodity Index. According to Matt Schwab, one of the senior managers in the fund, the fund plans to maintain its extra weight in gold investments throughout this year, which expects the price of the yellow metal to rise to $ 3000 in 2025. Wall Street optimism to analysts and mediators in Wall Street banks is also optimistic, where ‘Bank of America’ and ‘JP Morgan & Co expect to reach a dollar to $ 3000. The price of gold in immediate trade exceeded $ 2600 per gram at the beginning of January. Nevertheless, gold has decreased since the US presidential election on November 5, and the precious metal has lost part of its attraction amid the rise in the dollar, the stock market and the formation with the optimism of the markets with Trump’s victory. But in the long run, the possibility of setting up new definitions is expected to accelerate trade tensions and increase the risk of economic growth. Economists and analysts believe that the procedures proposed by Trump can feed inflation, which complicates the path of the Federal Reserve after lowering interest rates this year. Gold and interest expectations in 2025 after the basic interest rates were reduced by about a quarter point in their last 2024 meeting, Federal Reserve officials on December 18 indicated that their interest rates would only lower interest rates in 2025, while complying with the borrowing costs. Darwi Kong, head of the DWS group, said: “If commercial relations are deteriorated by the new Trump’s new policy, we can see a negative response to the stock market. Gold would be good to keep it to hedge these risks,” said Darwi, head of the Commodity Department of DWS Group. For the rest of the world, potential commercial wars with the United States can push central banks to accelerate the rate of cash facilitation. It is a scenario that will improve the performance of gold, according to Allen Carnenezilo, the administrative partner of the Swiss company “Frontier Commodities”, which believes gold prices will exceed 2800 dollars this year. Patrick Fruzitte, a wallet manager at the Rose Advisors in New York, said the big difference between now and Trump is the first level of spending in deficit, as the US debt increased to about 28 trillion dollars at the end of 2019, and that the federal shortage of the Budie Office in the Congress office would be, according to the budget office. Fear of the US government’s ability to pay its debt may be concerned about some investors to put their money in the Treasury bonds, according to Jeff Molincamp, who assigns about 12% of his fund, which indirectly carries his name to gold. Faruziti concluded and pointed out that the next US administration promised to control the federal deficit and said: “Acts are more important than sayings. I will not reduce my possession in gold until I see the federal deficit shrinking with my eyes.”