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Gold (GC=F) had a stellar 2024, with prices reaching fresh highs, but the question for investors this year is whether the precious metal can continue its strong run of performance?
The price of gold has risen more than 30% over the past year, hitting an all-time high of $2,748.23 per ounce in October, but has since eased back and was trading at $2,664.40 an ounce on Tuesday afternoon.
Goldman Sachs (GS) had said in December that it expected gold prices to hit $3,000 by the end of 2025.
However, analysts from the investment bank have since pushed back that timeline, saying that they now expect the precious metal to reach the $3,000 mark in the second quarter of 2026. Instead, Goldman Sachs analysts now believe gold prices could reach $2,910 by the end of this year.
Read more: Funds for investors to watch in 2025
They said that the US Federal Reserve's more hawkish approach to monetary policy could weigh on gold price growth this year. However, the analysts also believed that president-elect Donald Trump's expected tariffs could bolster buying as an inflation hedge.
When the dollar rallied as new year trading got back into full swing, with investors gearing up for Trump's return to the White House and eyeing potentially supportive policies for the greenback, this put pressure on the gold price. The precious metal is typically traded in dollars, so a stronger greenback can weigh on the commodity.
At the same time, fears of escalated geopolitical tensions upon Trump's return to office may also boost the appeal of gold to investors, given it is considered a safe-haven asset in times of uncertainty.
How do you think gold will perform this year? Will it rally to fresh highs? Vote in our poll below.
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