"Gold forecast that will be widely discussed by major banks."

According to Wall Street analysts, gold prices are expected to rise further in 2025, but the pace of gains will slow following last year's remarkable 27% increase. According to the average forecasts of banks and refiners participating in a Financial Times survey, gold is expected to climb to approximately $2,795 per troy ounce by the end of the year.

DEMAND FROM CENTRAL BANKS AND GEOPOLITICAL FACTORS

Gold is expected to continue benefiting from purchases by global central banks that have moved away from the dollar since the U.S. imposed sanctions on Russia following its invasion of Ukraine in 2022. The Federal Reserve's interest rate cuts, rising debt levels under the Donald Trump administration, and conflicts in the Middle East and Ukraine are also expected to drive prices higher.

ANALYSTS' FORECASTS AND PRICE EXPECTATIONS

Henrik Marx, head of global trading at Heraeus Precious Metals, predicts that gold could reach $2,950 per troy ounce this year. While Goldman Sachs expects prices to reach $3,000 by the end of 2025, institutions like Barclays and Macquarie foresee lower levels. The most bearish forecasts come from Barclays and Macquarie, both of which expect gold to fall to approximately $2,500 per troy ounce by the end of the year - a decline of about 4% from current levels.

Macquarie analysts wrote in their year-end outlook, "Our base case scenario until 2025 is that gold will initially face ongoing pressure from the strength of the U.S. dollar, but will be supported by improving physical demand and stable official sector demand."