More Stories

Informist, Tuesday, Jan. 28, 2025

 

MUMBAI – Gold and silver prices are likely to continue their bullish momentum in 2025. The London Bullion Market Association sees the average price of gold rising 14.7% and that of silver up 16% from last year's average prices, the association said in its annual precious metals forecast survey. 

 

In 2025, the average price of gold is seen at $2,736.69 per ounce, against last year's average price of $2,386.20 per ounce, the survey said. Analysts who were part of the survey collectively expect gold to perform better than last year, mainly driven by the US Federal Reserve's policies, demand from central banks, and geopolitical uncertainties.

 

"If the Fed signals concerns about rising inflation and takes action to combat it, gold prices could rise as investors seek protection from currency devaluation. If the Fed's policies are perceived as too loose and inflation expectations rise, gold may also benefit," the association said.

 

Gold prices are forecast to trade between $2,250 and $3,290 per ounce this year. This range of $1,040 is significantly larger than the 2024 range forecast of around $624, suggesting some price volatility this year, the association said. None of the analysts expect an average price above $3,000 per ounce this year, but 20 analysts see a high price of $3,000 per ounce or more.

 

"Geopolitical risks are likely to stay elevated with Trump's return to the White House unlikely to be a calming influence, which could see central banks, especially those in emerging markets, continue to add gold to their reserves at a brisk rate," the report quoted Grant Sporre, global head of metals and mining at Bloomberg Intelligence, as saying.

 

The analysts expect silver to follow gold's bullish path this year, with an average price of $32.86 per ounce, around 16% higher than the actual average price in 2024. This optimistic stance is backed by expectations of continued strong industrial and investment demand, and silver's habit of treading a path similar to gold, it said. Silver prices could trade in a range of $24-$43.50 per ounce this year.

 

At 1339 IST, the most-active February gold contract on the COMEX was at $2,741.8 per ounce, up 0.1% from the previous close, and the most-active March silver contract was at $30.31 per ounce, down 0.3% from the previous close.  End

 

US$1 = INR 86.52

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Ashutosh Pati

Edited by Avishek Dutta

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.