KEY POINTS
- Gold could peak at $3,000/oz in 2025 but ease later.
- Silver prices may rise to $35/oz before falling under $30/oz.
- PGMs face price pressures due to weak demand and high inventories
Precious metals consultancy Metals Focus forecasts spot gold prices could hit $3,000/oz in 2025, driven by interest rate cuts, geopolitical risks, and portfolio diversification.
Gold prices to ease by late 2025 despite early gains
According to its 2024/25 report, gold peaked at $2,686/oz in September 2024 and may average $2,800/oz by the first quarter of 2025. However, prices are expected to ease to $2,400/oz by the end of the year due to high U.S. equity valuations, which could trigger a market correction. Central bank gold purchases will provide some support, but fundamentals may weaken at elevated prices.
Recent stock market rallies have pushed some investors to buy gold as a portfolio hedge.
“After all, price-to-earnings ratios are exceptionally high, so owning defensive assets like gold makes sense,” the report said.
Long-term investors are also concerned about rising U.S. government debt, and these concerns have driven increased demand for silver as well.
PGMs under pressure as electric vehicles impact demand
According to a report by Miningweekly, Metals Focus projects silver prices will peak at $35/oz by the second quarter of 2025, benefiting from gold’s momentum and persistent supply deficits. However, economic weakness in China could limit further gains.
The gold-silver ratio is expected to stay in the low-to-mid 80s. As gold loses steam later in 2025, silver prices could dip below $30/oz. Still, the yearly average is forecast to rise 9% to $30.80/oz, the highest in 13 years.
Platinum prices have ranged between $850/oz and $1,100/oz this year and are expected to average $1,070/oz in 2025, up 13%. Palladium is forecast to increase only 3% to $1,010/oz, constrained by high inventories.
Rhodium prices are projected to drop 16% to $4,000/oz due to weaker demand from the chemical and glass industries. Platinum group metals remain under pressure as electric vehicle adoption threatens long-term demand.
