Gold prices likely to rise at slower pace in 2025: World Gold Council

Gold bars

The World Gold Council expects gold prices to rise at a slower pace in 2025, after notching some record-breaking levels this year.

In a report issued today, Dec. 12, the council explained that the yellow metal’s prices have so far climbed by more than 30% this year. However, next year’s gains are likely to be more moderate due to variables such as growth and inflation.

He added that potential trade wars in US President Donald Trump's second term, alongside the middling interest rate expectations, may extend to come in below-par economic growth. This could in turn hurt demand from investors and consumers.

All eyes are on the US as Trump's second term may drive a strong boost to the local economy. However, his policies could also have the opposite effect, raising a great deal of tension among global investors.

The precious metal, according to the report, has the potential to turn higher if global markets witness either a significant decline in interest rates or a reversal in geopolitics or financial market conditions.