Wall Street: "Gold Prices Will Rise Next Year... Forecast of $3,000 per Ounce"

The price of gold, which has risen sharply this year, is expected to continue its high-flying trend next year, according to Wall Street, as reported by the US Wall Street Journal (WSJ) on the 28th (local time).

According to the report, JP Morgan, Goldman Sachs, and Citigroup have set a gold price target of $3,000 per ounce in their 2025 gold market outlook, evaluating it as the most promising asset in terms of investment performance among precious metals and commodities.

This year's gold price increase rate is expected to be the highest since 2010. The international gold price continued its rally, rising to around $2,800 per ounce at the end of October, before adjusting after former President Donald Trump's victory in the US presidential election. Although the price increase trend has slowed, gold futures prices on the New York Mercantile Exchange have risen about 27% this year through the 27th, surpassing the Standard & Poor's (S&P) 500 index increase rate of 25% during the same period.

The general consensus among major Wall Street investment banks is that gold prices will show a mid-teens percentage increase next year. Natania Kaneba, JP Morgan's Chief Global Commodities Strategist, stated in a previous report, "Gold still holds a good position as a hedge (risk-averse) asset," citing the increased uncertainty surrounding the macroeconomic environment at the beginning of the next Donald Trump administration.

Gold prices tend to rise when inflation expectations increase or interest rates fall, and Wall Street foresees the possibility of such scenarios unfolding next year. Additionally, demand for gold as a safe investment asset remains significant, with geopolitical risks such as the Middle East and Ukraine regional wars and escalating US-China tensions supporting gold prices.

Furthermore, the WSJ explained that the stringent sanctions imposed by the West on Russia following the invasion of Ukraine have increased gold demand from central banks of non-Western countries. According to a survey conducted by the World Gold Council (WGC) this year targeting central banks worldwide, 29% of central banks responded that they intend to increase their gold holdings over the next 12 months. This is the highest proportion since the WGC began the related survey in 2018.

Wall Street also views the minimal industrial demand for gold compared to other precious metals such as silver and platinum as a positive factor for gold prices. Greg Schiller, a JP Morgan strategist, said, "Unlike other commodities, gold does not carry industrial burdens, so there is less risk of price declines due to trade conflict shocks."