Gold just wrapped up a stellar year, posting its biggest annual gain since 2010, according to a new article on Yahoo Finance. The precious metal surged more than 27% in 2024, outpacing the S&P 500’s impressive 23% gain. And while its rally temporarily stalled after Donald Trump’s election victory in November, Wall Street analysts are optimistic that gold’s ascent is far from over. 

Bullish Outlook from Top Financial Institutions 

As we head into 2025, major players like JPMorgan and Goldman Sachs predict that gold will remain a strong hedge against uncertainty in the global economy and geopolitical landscape. 

JPMorgan analysts wrote, “We maintain our multi-year bullish outlook on gold for a third year in a row,” adding that “gold still looks well situated to hedge the elevated levels of uncertainty around the macro landscape heading into the initial stages of the Trump administration in 2025.” Their forecast for the year: gold rising to $3,000 per ounce. 

Similarly, Goldman Sachs sees the metal climbing even higher, potentially reaching $3,050 if central banks accelerate their bullion purchases. “Surveys and history suggest that EM [emerging markets] central banks buy gold as a hedge against financial and geopolitical shocks,” their analysts noted. 

Key Drivers Behind Gold’s Momentum 

Several factors are driving the continued bullish sentiment for gold: 

  • Central Bank Demand: Emerging markets’ central banks have been snapping up gold to protect against financial and geopolitical risks. This trend shows no signs of slowing. 
  • Inflation and Tariffs: Sticky inflation, coupled with new policies from the Trump administration—like higher tariffs—could further drive up prices. 
  • Federal Reserve Policy: If the Fed lowers interest rates at least two more times, analysts expect a significant increase in demand from retail investors seeking wealth preservation. 

Steven Feldman, CEO of GBI, highlighted this untapped potential among U.S. retail investors. “The retail investor in the U.S. did not really participate in 2024 all that much,” Feldman told Yahoo Finance. “If interest rates were to decrease a bit, or there’s more pick up in inflation or stagflation, I think US retail investor flows should be good, so that will be supportive.” 

What This Means for Investors 

For those looking to hedge against economic uncertainty, 2025 could be an excellent time to add gold to their portfolio. With predictions of gold reaching or surpassing $3,000 per ounce, investors may see this precious metal as a safe haven during what is shaping up to be a volatile economic and geopolitical landscape. 

As always, diversification is key. Consider a mix of gold bullion, rare coins, and other precious metals to balance risk and maximize potential gains. 

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