Gold is set to rally further this year, according to Wall Street bankers.

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Wall Street analysts say gold prices are poised to rise further in 2025, although gains are likely to ease after last year’s 27 percent rally.

Gold It is expected to reach $2,795 per troy ounce by the end of the year, according to an average forecast of banks and refiners by the Financial Times. This is 7 percent higher than the current level.

It is expected that yellow metal will continue to benefit from international purchases Central banksIn the year It has been moving away from the dollar since the US imposed sanctions on Russia following its full-scale invasion of Ukraine in 2022.

Interest rate cuts by the U.S. Federal Reserve, threats from President-elect Donald Trump to increase the U.S. government’s debt levels, and conflicts in the Middle East and Ukraine are forecast to increase inflation. Such were the reasons behind the biggest annual profit since last year 2010.

Heraeus Precious Metals global head of business Henrik Marks predicted gold could rise to $2,950 a troy ounce this year, adding: “We think central bank interest rates will be a strong basis for buying next year.”

He added that Trump’s second term as president could also be supportive for gold prices. “Everything he says will increase debt, which will weaken the dollar and increase inflation.” This is usually a good mix for gold.

The World Gold Council said in its report that this year’s growth would be “positive but more moderate”.

The most bullish call among those surveyed comes from Goldman Sachs, which expects the price to reach $3,000 by the end of 2025. The bank cited central bank demand and expected rate cuts by the Fed.

The most dovish forecasts came from Barclays and Macquarie, both of which expect gold to sink to $2,500 a troy ounce by the end of the year – down 4% from current levels.

Macquarie analysts wrote in their year-end outlook: “Our fundamental case for gold in early 2025 is for continued pressure from the strength of the US dollar, but supported by improved physical purchases and steady sector demand.”

Global central banks bought 694 tonnes of gold in the first nine months of 2024. The People’s Bank of China announced in November that it had resumed gold purchases after a six-month hiatus.

Falling US interest rates contributed to gold’s rally in the second half of last year, and further rate cuts could be critical to the yellow metal’s outlook. Gold prices rebounded slightly after the Fed cut rates in December, but indicated that borrowing costs will fall more slowly than previously expected in 2025.

Because gold is a non-yielding asset, it typically benefits from higher interest rates, as gold is less likely to be held.

Trump’s election win in November presents one of the best scenarios for gold, as higher U.S. fiscal spending and geopolitical uncertainty continue, said Michael Haig, head of commodity research at Societe Generale.

In the year “Momentum is pulling back, combined with geopolitical tensions,” said Haig, who expects gold prices to rise to $2,900 a troy ounce by the end of 2025.