The World Gold Council’s (WGC’s) latest report, Gold Outlook 2025, forecasts a nuanced year for gold, following its best annual performance in over a decade in 2024. Surging 28% year-to-date, gold achieved 40 new record highs, driven by strong central bank and investor buying, despite waning consumer demand.
WGC’s 2025’s outlook remains mixed, shaped by global macroeconomic factors. While modest growth is expected, significant shifts—such as lower interest rates, heightened market volatility, or robust central bank demand—could bolster performance. Conversely, sustained high rates or weakening consumer demand may pose challenges.
Juan Carlos Artigas, Global Head of Research at the World Gold Council, commented: “Gold is having a record-breaking year due to a confluence of factors, driving the gold price and demand to record levels. And while the current consensus on global economic performance suggests that gold could move sideways, the uncertainty surrounding the geopolitical landscape could provide a springboard for gold next year.”
“2025 is set to be marked by evolving fiscal and economic policies that may result in shifting global dynamics. For gold, 2025 will be a tale of two halves – first, we may experience more risk-on appetite as we wait for strategic and tactical drivers to unravel, leading to more clarity and direction for gold’s performance later in the year. This could really ring true if there is a significant drop in interest rates or a marked increase in market volatility to further fuel investor interest.”
The report highlights continued central bank buying and the pivotal roles of Asian markets and geopolitical stability in shaping gold’s performance.
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