The price of %Gold continues to rise to start 2025 after the precious metal saw its biggest annual gain in 14 years.
Gold’s price rose more than 1% on Jan. 2, the first trading day of the year, to reach $2,670 U.S. per ounce, its highest level since mid-December.
The latest increase comes after gold rose 27% in 2024, beating the 23% increase in the benchmark S&P 500 stock index.
It was gold’s biggest annual gain since 2010.
Gold’s price has been rising steadily over the past year due to a combination of geopolitical turmoil, declining interest rates, and bullion purchases by central banks around the world.
Going forward, analysts expect more gains for gold.
%JPMorganChase (NYSE: $JPM) recently wrote in a report that “gold still looks well situated to hedge the elevated levels of uncertainty around the macro landscape heading into the initial stages of the Trump administration in 2025.”
JPMorgan forecasts that gold’s price will rise to $3,000 U.S. an ounce in 2025.
%GoldmanSachs (NYSE: $GS) also forecasts that gold’s price will hit $3,000 U.S. by the end of this year amid continued purchases from central banks.
Declining interest rates around the world and ongoing wars in Europe and the Middle East should also help support the price of gold in coming months, says Goldman Sachs.
Gold is viewed as a safe haven asset and its price often rises during periods of instability.