While most markets were gripped by turmoil arising from the release of China’s novel DeepSeek artificial intelligence (AI) model and anticipation about the Federal Open Market Committee (FOMC) meeting, gold slowly continued its climb.
Indeed, the world’s biggest commodity by market cap hit new all-time highs (ATH) as recently as January 31 and is, at press time, 6.95% in the green year-to-date (YTD) at $2,808.
Under the circumstances and with multiple prominent analysts and strategists opining that gold’s path to $3,000 is clear since late 2023, Finbold elected to consult DeepSeek, also available via Finbold’s own AI price prediction tool, on where the precious metal might stand on December 31, 2025.
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DeepSeek identifies key Gold price drivers
Quickly after receiving the prompt – and despite technical issues allegedly arising from high volume – DeepSeek identified multiple key drivers of the price of gold.
Specifically, the AI focused on five main facets: central bank demand, geopolitical risks, monetary policy, trade dynamics, and sheer momentum.
It has been well-recorded through 2024 that national banks of multiple countries in the world have been undertaking an extensive buying effort regarding the precious metal. Such activity has been widely attributed to geopolitical tensions, primarily centered on but not limited to Ukraine and the Middle East.
Simultaneously, DeepSeek assessed that the current U.S. policy – including both the Fed’s dovish pivot in the second half of 2024 and Donald Trump’s tariff plan – have simultaneously reduced gold’s opportunity cost and created fertile ground for speculative buying.
DeepSeek sets gold price target for December 31, 2025
Finally, the AI pointed toward gold’s positive momentum and estimated it – along with the other four factors – is likely to persist through much of 2025. Thus, DeepSeek not only agreed with experts but also provided an even greater 13.96% upside to $3,200.
Still, it also highlighted that the price target is based on the assumption that the overall direction of monetary policy will remain the same and that the geopolitical situation will remain similar.
Featured image via Shutterstock
