Trump’s second term illuminates bullish path for | Finance news

By Anushree Mukherjee

(Reuters) – Gold costs look set for a record-breaking 2025 as heightened financial uncertainty and inflation concern beneath U.S. President Donald Trump’s second time period enhance demand, regardless of greenback energy and diminished Federal Reserve rate-cut expectations.

The ballot of 36 analysts and merchants returned a median forecast of $2,756 per troy ounce of gold in 2025, up from $2,674 predicted in a ballot three months in the past.

Spot gold costs hit a file high of $2,790.15 in late October and have been final at $2,742 on Monday. The average price was $2,386 in 2024. [PREC/POLL]

Gold’s spectacular 27% price rise in 2024, probably the most since 2010, made it one of the best performing property of the yr, as buyers favoured the steel to hedge towards international dangers and the U.S. Federal Reserve slashed rates of interest thrice.

“Geopolitical risks continue to bubble in various hot spots adding to inflationary risks and continued safe-haven demand for gold,” mentioned impartial analyst Robin Bhar.

Gold retreated in November to December in a U.S. post-election selloff and a December assembly which noticed Fed policymakers trim estimates of fee cuts for 2025.

This month, the steel discovered help from investor uncertainty over Trump’s U.S. import tariff threats and considerations that potential trade conflicts would stoke inflation.

“With record gold prices foreseen, some sectors in the bullion market will benefit and others struggle,” mentioned impartial analyst Ross Norman. He added that jewelry demand was more likely to be affected in price-sensitive Asian areas, whereas motivation for purchases by central banks and speculative curiosity in gold was more likely to stay elevated. [GOL/AS]

SILVER TO REMAIN IN DEFICIT

Silver costs are anticipated to benefit from sturdy industrial demand, particularly in inexperienced applied sciences and renewable power sectors, however lacklustre investment demand from exchange-traded funds (ETFs) and the potential affect of tariffs on international growth might have an effect on the steel’s prospects, analysts mentioned.

“The silver market is set to remain undersupplied in 2025, but a deficit alone will not be sufficient to drive upside price risk for silver,” mentioned Customary Chartered analyst Suki Cooper, including that investment demand has struggled to keep tempo in latest months.

The ballot forecasts silver costs to average $33.10 per ounce in 2025, decrease than $33.75 estimated within the earlier ballot, however increased than the present $30.20.

(Reporting by Anushree Mukherjee and Swati Verma in Bengaluru; further reporting by Polina Devitt in London; Enhancing by Veronica Brown and Emelia Sithole-Matarise)