Major banks anticipate that gold will continue its record-breaking rally into 2025, fueled by renewed inflows into exchange-traded funds (ETFs) and expected interest rate cuts from central banks, including the U.S. Federal Reserve.

Gold prices have risen over 27% this year, reaching a record high of $2,639.95 per ounce recently.

Analysts from J.P. Morgan highlight that while strong physical demand from China and central banks has supported prices, investor flows, particularly in retail-focused ETFs, are crucial for sustained growth.

The Fed’s recent rate cut and projections for further cuts make gold an attractive investment in a low-rate environment, U.S. News has reported.

Upcoming market volatility, especially around the November U.S. presidential election, may also drive investors toward safe-haven assets like gold.

Various brokerages forecast gold prices ranging from $2,339 to $2,900 per ounce by 2025.

Written by B.C. Begley