Gold Prices Forecast to Soar to $4,400 by 2025: What This Means for Investors and Businesses in Oman
ANZ Forecasts Gold to Reach $4,400 per Ounce by End of 2025 Amid Rising Uncertainties
On Thursday, ANZ projected that gold prices will climb to $4,400 per ounce by the end of 2025, driven by escalating geopolitical tensions, economic and financial uncertainties, and expected monetary easing by the Federal Reserve. The bank further anticipates gold peaking near $4,600 per ounce by June 2026, before gradually declining in the latter half of 2026 as the Federal Reserve completes its easing cycle and more clarity emerges regarding US economic growth and trade tariff policies.
ANZ also warned of potential downside risks, including a more hawkish stance from the Federal Reserve and unexpected economic growth. The bank noted that gold has already surged over 60% to $4,200 per ounce this year, with the rally showing no signs of losing momentum. Although no immediate factors appear likely to reverse the uptrend, a healthy market correction remains possible.
Gold prices hit a new record high of $4,241.77 on Thursday, supported by increased safe-haven demand following renewed tariff threats against China by US President Donald Trump, alongside growing expectations of US interest rate cuts.
Meanwhile, UBS highlighted the possibility of declining real interest rates, potentially entering negative territory, which could further boost gold’s appeal as a portfolio asset. UBS projects gold could rise to an upside target of $4,700 per ounce.
— Reuters
Special Analysis by Omanet | Navigate Oman’s Market
The forecasted surge in gold prices to over $4,400 per ounce by end-2025 presents a significant opportunity for Omani investors and businesses to diversify portfolios and hedge against geopolitical and economic uncertainties. However, smart investors should also prepare for volatility and potential corrections, especially if US monetary policy tightens unexpectedly. For entrepreneurs, this signals a chance to capitalize on increased demand for gold trading, storage, and related financial services in Oman.
