Unprecedented Highs in 2024

The year 2024 marked a historic milestone for gold, with the precious metal reaching an all-time high of $2,790.12 per ounce in late October. This remarkable achievement was driven by a combination of geopolitical tensions, pivotal U.S. presidential elections, and significant monetary policy adjustments by central banks worldwide.

Driving Forces Behind the Surge

Major financial institutions, including the U.S. Federal Reserve and the European Central Bank, initiated a series of interest rate cuts, enhancing gold's appeal as a non-yielding asset. Concurrently, ongoing conflicts such as the Russia-Ukraine war and escalating tensions in the Middle East further solidified gold's status as a safe haven during uncertain times.

Challenges and Optimism

Despite these factors, the gold market faced headwinds from the re-election of U.S. President Donald Trump and the Federal Reserve's revised economic projections, which anticipated a less aggressive policy easing. This led to a stronger U.S. dollar and a more optimistic economic outlook, temporarily diverting attention from gold.

Looking Ahead to 2025

Gold experienced a 27% annual increase, despite a slight monthly decline. Analysts from Heraeus Precious Metals predict that gold could reach up to $2,950 per ounce in 2025, as the trends that fueled its rise in 2024 are expected to continue, compounded by the unpredictability of Trump's policies and tariffs.