Gold demonstrated exceptional price performance in 2024 and delivered attractive returns to investors. A strident rise of over 25 percent saw the gold price reach a record level of $2,800 per troy ounce by the end of October. This price performance followed significant uncertainties on the geopolitical front, expectations of interest rate cuts, volatile currency movements, and bond yields. The two ongoing wars ensured that the price of the yellow metal carried a good amount of a ‘war risk premium.’

From the record levels of end-October, the metal corrected downward by about 6 percent to trade in the vicinity of $2,650 per ounce by the year-end. This was because of continued dollar strength, anticipated easing of geopolitical tensions, and slowing official Chinese purchases.

As is their wont, gold producers and exporters are not happy with the price correction. The market is home to incurable ‘gold bulls’ who doggedly believe in the metal’s bull-run. No wonder, some reports—including from reputable houses—have predicted that gold will trade above $3,000 per ounce in 2025.

So, where’s gold headed in the first half of 2025? There are tenable reasons to disagree with the bull view. Without a doubt, gold is a safe-haven asset, and its demand rises during uncertain times, including geopolitical tensions.

For 2025, investors have to bear in mind a few critical factors. The US economy is performing well, and its current resilience is well........

© Free Press Journal