Gold Poised for Record Highs in 2025, Bullion Experts Forecast

Gold prices are projected to climb to new record highs in the coming year, according to industry experts surveyed at the London Bullion Market Association (LBMA) annual conference. Delegates at the event, which took place in Miami, forecast that gold will rise to $2,917.40 an ounce by late October 2025, representing a 10% increase from current levels. The figure is based on an average of predictions gathered from traders, refiners, and miners over two days at the LBMA gathering, which remains one of the most closely watched events in the bullion industry.

Gold's 2024 Performance: A Safe Haven Amid Global Uncertainty
Gold has been one of the standout performers in 2024, consistently setting new records due to its status as a safe haven for investors, a hedge against economic turbulence, and a favored asset for portfolio diversification. The precious metal’s most recent peak was reached last month, surpassing $2,685 per ounce. This rise has been driven in part by the Federal Reserve's pivot to interest rate cuts, a move that bolstered gold’s appeal by making it more attractive in a lower-rate environment. Historically, non-yielding assets like gold tend to perform well when interest rates decline, as lower rates reduce the opportunity cost of holding gold.
Gold’s 2024 rally has also been supported by significant central bank purchases, as countries look to diversify their reserves amid geopolitical tensions and global economic uncertainty. Many central banks, particularly in emerging markets, have increased their gold holdings, contributing to the steady demand that has helped push prices higher.

Looking Ahead: US Presidential Election and Economic Factors
As the US presidential election approaches, investors are closely watching the potential impact on gold prices. The election, now just a few weeks away, could introduce additional market volatility, particularly if there are concerns about the direction of US economic and trade policy. Republican candidate Donald Trump, in a recent interview, defended his plans for a substantial increase in tariffs and promised more direct intervention with the Federal Reserve. He also downplayed concerns over the expanding federal deficit, a stance that could add to the perception of risk and increase gold’s appeal as a safe haven asset.
Economic and political uncertainty typically drives demand for gold, as investors seek to safeguard their wealth during periods of instability. With the election looming and the possibility of significant changes in US economic policy on the horizon, gold may continue to attract strong interest from investors looking to hedge against potential market disruptions.

Spot Gold and Other Precious Metals on the Rise
Spot gold was trading up 0.5% at $2,674.79 an ounce in London on Wednesday morning, reflecting steady investor demand. Other precious metals, including silver, palladium, and platinum, also saw gains. Silver, in particular, is expected to see significant price increases over the next year. According to the same LBMA survey, silver is forecast to rise by more than 40%, reaching $45 an ounce by late 2025. This projection underscores the strong demand for precious metals as a store of value and a hedge against inflation in the current economic climate.
Palladium and platinum, both widely used in industrial applications such as automotive manufacturing, are also benefiting from robust demand. The overall strength of the precious metals market highlights investors' search for safe, tangible assets in the face of ongoing geopolitical and economic uncertainty.

Strong Outlook for Gold Amid Volatile Global Conditions
The forecast for gold’s ascent to record highs by 2025 reflects a broader sentiment of caution in global financial markets. With central banks continuing to buy gold and investors seeking protection against inflation, the metal’s appeal remains robust. The upcoming US presidential election, combined with evolving central bank policies and geopolitical tensions, will likely shape the trajectory of gold and other precious metals over the next year. As uncertainty continues to loom, gold remains a key asset for investors aiming to safeguard their portfolios in the face of potential economic turbulence.