Gold costs poised to check file highs in 2025 on geopolitical tensions, says ANZ

Investing.com– Gold is anticipated to retain its enchantment as a safe-haven asset in 2025 as elevated geopolitical and financial uncertainties, coupled with robust central financial institution shopping for, are anticipated to assist costs, ANZ analysts mentioned.

Whereas headwinds from a agency U.S. greenback and Federal Reserve price cuts persist, ANZ sees average returns of round 10% within the yellow steel, with costs doubtlessly reaching file ranges of $2,900 per ounce subsequent 12 months, ANZ analysts mentioned in a notice.

Geopolitical dangers—corresponding to growing tensions within the Center East and challenges stemming from Trump’s commerce insurance policies—will probably hold gold demand buoyant, analysts mentioned.

ANZ’s outlook additionally highlights the position of China and India in driving demand. China’s financial assist measures and risky yuan are anticipated to spice up funding demand for gold bars, cash, and ETFs. In the meantime, India’s gold consumption ought to stay strong, bolstered by rising incomes and diminished import duties, with a 9% improve in jewelry demand anticipated, in line with ANZ.

On the availability aspect, central banks will stay energetic patrons, although at a slower tempo. ANZ forecasts annual gold purchases by central banks to be round 850 tons in 2025, down from 950 tons in 2024, as nations like Russia, China, and India stockpile reserves.

ANZ analysts mentioned gold might face resistance at $2,780-$2,790 per ounce however may rally towards $2,900 if these ranges are breached. Nevertheless, value momentum is anticipated to rely closely on U.S. financial coverage and geopolitical developments.

This regular but cautious optimism underscores gold’s position as a hedge towards rising macroeconomic dangers, offering a “modest shine” within the upcoming 12 months.