Jamie Spencer
Gold is poised to climb to record levels over the next year, according to a survey conducted at the annual London Bullion Market Association (LBMA) gathering in Miami. Industry insiders—including traders, refiners, and miners—expect gold prices to reach an average of $2,917.40 per ounce by late October 2025, approximately 10% higher than current prices. The forecast reflects optimism among industry participants about gold’s continued role as a safe-haven asset in a turbulent economic landscape.
Record-Setting Performance in 2024
In 2024, gold has been one of the strongest-performing commodities, reaching successive new highs as investors flock to it for stability. Its most recent peak, above $2,685 per ounce, was achieved last month, driven in part by the Federal Reserve’s shift to cutting interest rates. Gold, which does not offer interest or yield, often performs better when rates decline, as lower borrowing costs make it a more attractive asset than interest-bearing investments.
Beyond interest rate dynamics, gold’s appeal as a wealth diversification tool and the continued demand from central banks have supported its ascent this year. The precious metal’s role in safeguarding wealth amid geopolitical uncertainties and market volatility has only strengthened its position.
Spotlight Shifts to the U.S. Presidential Election
Investors are also closely monitoring the upcoming U.S. presidential election, which could have significant implications for financial markets. In an interview, Republican candidate Donald Trump outlined plans for a substantial increase in tariffs and a more direct approach to working with the Federal Reserve while downplaying concerns about the growing federal deficit. Such policy shifts could further impact market sentiment, adding to the demand for gold as a hedge against economic uncertainty.
As of Wednesday morning, spot gold had gained 0.5%, trading at $2,674.79 per ounce at 8:41 a.m. in London. The broader precious metals market also saw gains, with silver, platinum, and palladium all rising.
Silver’s Surge and the Outlook for Precious Metals
Silver, another key player in the precious metals market, is expected to experience a substantial rise alongside gold. According to the LBMA survey, silver is projected to gain more than 40% over the next year, reaching a price of $45 per ounce. The outlook for silver has been bolstered by its industrial demand, particularly in technologies such as solar power and electronics, alongside its role as a store of value.
The bullish sentiment surrounding gold and silver highlights a broader trend among investors seeking safe-haven assets amidst global economic uncertainties. With central banks continuing to buy precious metals to diversify their reserves, demand will likely remain strong in the coming year.
Navigating the Path Ahead for Gold
As the year progresses, the market will closely watch how gold performs against the backdrop of evolving monetary policies and geopolitical developments. While the Federal Reserve’s rate cuts have provided a boost, the potential economic shifts stemming from the U.S. election could introduce new dynamics to the gold market.
The consensus at the LBMA event suggests that gold’s status as a haven asset will remain intact, with further gains expected as investors navigate an uncertain global environment. The forecast for gold prices to exceed $2,900 per ounce by late 2025 indicates that many in the industry see continued upside potential for the precious metal.
