Gold has shown its strongest performance in recent years, rising by 27% in 2024 due to the intense purchases of central banks, the Fed’s loose monetary policy and increasing geopolitical tensions. However, Donald Trump’s re-election as president has partially weakened this upward momentum in gold. As the competition between Bitcoin and gold continues, analysts predict that gold will continue to rise in 2025 and its price could exceed $2,800.
In 2024, gold attracted attention by showing its strongest annual performance since 2010 with a 27% increase. While the ounce price of the precious metal approached $2,800 with Trump’s victory in the presidential election and large-scale gold purchases by central banks, the Fed’s loose monetary policies and geopolitical uncertainties also increased the demand for safe havens. China and other emerging markets in particular led the way in gold’s appreciation with intense central bank purchases. According to Bloomberg analysts, this trend is expected to continue in 2025. The Fed’s loose monetary policy continues to support gold demand by making non-yielding assets more attractive.
Darwei Kung of DWS Group predicts that gold will reach $2,800 by the end of 2025, and notes that the Trump administration’s trade policies could create more inflationary pressure, making gold a powerful hedge against risks.
There are also signs that gold purchases increase during periods when China’s local currency, the yuan, is depreciating. Analysts recall that similar strategic moves have been observed in the past when China’s currency weakened.
Following Trump’s victory in the presidential election, the US dollar strengthened and stocks rose. These developments weakened the bullish momentum of gold to some extent. In addition, Bitcoin price was seen to have temporarily reduced investor interest at $97,423. However, analysts warn that Trump’s trade policies could negatively affect economic growth. It is stated that these policies could bring gold’s safe haven status back to the forefront.
Trump’s proposal to create a strategic Bitcoin reserve with federal funds has also been a topic of discussion. Gold advocate Peter Schiff called this proposal an “economic betrayal” and drew attention to the steady rise in gold in 2025. The $34 gain in gold on the first trading day of January was an important indicator for Schiff. It was emphasized that despite Bitcoin’s increase in value, it remained below the $100,000 level and was in a downtrend.
Goldman Sachs revised its gold price forecasts. The bank decided to postpone its $3,000 price target for 2025 to mid-2026. Experts said central bank purchases will determine the long-term course of gold and that they expect the Fed to cut interest rates by 75 basis points in 2025.