Gold Price Prediction 2025: Trends, Forecasts, & Key Factors

Gold had a stellar year in 2024, increasing from AUD 3038 in January 2024 to AUD 4200 on December 31st, 2024—over a 35% increase!

We also saw a 10% price increase between December 2024 and March 2025. As it appears, the price trajectory is not going down anytime soon. 

Thinking of what to expect in 2025?

Well at the time of writing this, Gold reached an all time high of 3004.81 in March of 2025. So where to next?

Here’s a breakdown of gold price predictions for 2025 by market analysts:

Let’s examine long-term price predictions, the factors influencing them, and a deep analysis of the price forecast.

Expert Predictions and Forecasts for Gold Prices

Market analysts forecast that gold will reach its all-time highest price in 2025. Several analysts predicted it would rise to AUD 4593 by the end of 2025. Even as of the time this article was written, the current price has exceeded the forecast.

Here are different gold price predictions across different timeframes: 

Short-Term Price Predictions for 2025

The previous table contains different gold price predictions by financial advisors and market analysts. Let’s have a further look at banks’ predictions and other analysts:

Mid-term Projections: 2026 to 2028

Predicting the price for the next few years can be challenging, considering that anything can happen between now and then. However, market analysts expect the price to appreciate between 2026 and 2028.

Long-term Scenarios: Gold Price Predictions Beyond 2028

If you are considering a long-term investment, here’s the price forecast by market experts: 

Financial advisors forecast the price to increase by 70% by 2030. Undoubtedly, the price will not depreciate anytime soon. What are the factors influencing this price forecast?

Let’s find out!

Factors Influencing Gold Price Predictions

Here are five fundamental drivers influencing gold price prediction:

1. A Strong US Dollar

In 2022, the US Dollar index (DXY), a measure of the dollar's strength, was around 104.51, and gold averaged about 2847 AUD per ounce. In contrast, when the DXY Index fell to 102.50 in 2023, gold prices rose to an average of 3035 AUD per ounce.

The US dollar and gold share an inverse relationship:

A strong dollar = Gold becomes expensive for foreign buyers, reducing demand.

A weak dollar = Gold becomes cheaper, boosting global demand.

Why?

Gold is valued in dollars (XAUUSD).

2. Trump's Presidency

Donald Trump's presidency and policies have significantly affected gold price volatility. His policy announcements led to market reactions that impacted gold.

For example, Trump's tariffs on imports like steel and aluminum have sparked fears of inflation and trade wars, pushing gold to US $2,940/oz. These tensions can drive investors to seek safe-haven assets like gold.

BNP Paribas’s strategists raised their 2025 gold forecast to 4900 AUD per ounce, citing "Trump tariff turmoil" as a key factor.

3. Inflation

Gold is traditionally seen as a hedge against inflation. When inflation rises, investors often turn to gold to protect their wealth.

As of the December 2024 quarter, Australia's annual inflation rate (measured by the Consumer Price Index or CPI) decreased to 2.40%. But uncertainty about future prices increases investors' interest in gold as a safe-haven asset.

4. Central Bank Policies

Central banks are diversifying their reserves by increasing gold holdings and reducing reliance on the US dollar. 

Goldman Sachs linked a potential 9% gold price rise to increased central bank demand.

The World Gold Council also mentioned that central banks will be involved in the gold demand puzzle in 2025.

5. Interest Rates

Australian interest rate changes and gold prices have an inverse relationship. When interest rates rise, the demand for gold decreases because most investors prefer assets that yield interest. 

Conversely, when interest rates reduce, gold demand increases.

6. Gold Demand & Supply

The jewelry industry, the technology industry, central banks, and investors highly demand gold. According to the World Gold Council’s report 2024, global gold demand reached a record-breaking 4.974.5 metric tons, and supply was at 4.974.5 metric tons.

Also, the World Gold Council forecasts that gold demand will remain strong in 2025 with more severe supply constraints. This unparalleled match in demand and supply will make gold a high-demand precious metal.

For more context, read our detailed post on the factors that influence the price of gold and silver.

Final Thoughts

Dinon Hughes mentioned something interesting in his recent LinkedIn post.

He said,

"Just because gold is up doesn't mean it is a bad time to invest in it. Just about everything else under the sun is up as well: stocks, bonds, you name it. For long-term investors, the focus should be on its role as a diversifier and hedge, and less so on the price swings."

A few Australian investors understand Dinon’s perspective and heavily invest in physical precious metals, such as gold cast bars, gold coins, and minted gold bars. 

Gold will remain a primary hedge against economic instability in 2025. Are you ready to join the train of investors diversifying their asset portfolio? 

Here are different ways you can invest in gold:

• Buy physical gold (gold bars and coins)

• Invest in gold ETFs

• Invest in gold mining stocks and more

Start now with our extensive collection of gold and secure your financial future.

Further Reading: Is Gold A Good Investment Right now?