Gold (XAU/USD) is set to end 2024 on a high note, recording a 27% annual gain—its best performance since 2010. The precious metal started the year trading at $2,062 per ounce and climbed to a yearly high of $2,788 in late October, marking a 35.20% surge before settling at $2,626 per ounce.
While recent months have seen a modest pullback, investors view this as a brief pause in an otherwise resilient rally. As the year winds down, all eyes are on 2025, with speculation mounting about gold’s trajectory in the first quarter.
ChatGPT predicts Gold price trajectory for Q1 2025
To provide a clearer outlook, Finbold consulted ChatGPT-4o, which projects that Gold prices could hover within a range of $2,600 to $2,750 by the end of Q1 2025. The AI model highlights a confluence of factors that will influence the price of yellow metal in the coming months.
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ChatGPT noted that the Federal Reserve’s cautious approach to rate cuts might act as a headwind for gold, as higher interest rates reduce the appeal of non-yielding assets.
Additionally, robust labor market data and persistent inflation reinforce the Fed’s hawkish stance, which weighed on gold prices in late 2024.
Despite these monetary policy challenges, geopolitical tensions continue to support gold’s safe-haven appeal. ChatGPT identified ongoing conflicts in Ukraine and the Middle East as significant drivers of demand. However, many of these risks appear to have been priced in, limiting their immediate impact.
Moreover, a potential return of Donald Trump to the White House could reignite global trade tensions, with tariffs and policy changes likely to heighten economic uncertainty. Central bank purchases also played a significant role in driving gold’s 2024 rally, a trend ChatGPT expects to persist in 2025.
As U.S. Treasury yields weaken, with 2-year and 10-year yields at 4.24% and 4.58%, respectively, the yellow metal could find additional support, reinforcing its appeal in an uncertain global environment.
Is $3,000 within reach in 2025?
While ChatGPT offers a conservative Q1 forecast, industry experts are more bullish on gold’s long-term prospects. Bloomberg Intelligence Commodity Strategist Mike McGlone has suggested that geopolitical tensions could drive gold prices to $3,000 in 2025.
This outlook, as reported by Finbold, aligns with rising demand for safe-haven assets in an uncertain global environment.
Similarly, Goldman Sachs (NYSE: GS) has also projected a $3,000 price target for gold, citing U.S. fiscal instability, heightened geopolitical risks, and strong central bank demand as critical factors. These dynamics, according to Goldman Sachs, could propel gold to new heights over the next year.
As markets contend with a volatile mix of fiscal instability and geopolitical uncertainties, gold’s role as a safe-haven asset remains firmly intact. Investors are likely to keep a close eye on Q1 developments as an indicator of whether 2025 will pave the way for gold to achieve new milestones.
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