Gold’s Predicted Rally in 2025

Gold is set for an unprecedented rally in 2025 as Bitcoin continues its slow activity as the year ends. Bitcoin enjoyed a spark towards the latter end of 2024, bursting forth after a Trump-fueled rally.

It’s no surprise Bitcoin surpassed $100k this year, having appreciated about 50% since November 3, alongside other assets like Dogecoin, which doubled in price.

While crypto assets enjoyed a stellar run toward the end of the year, gold has been dominating. The precious metal surged by 28%, attracting financial investors back as a safe haven amid rising geopolitical and economic tensions. Gold started the year at $2014 and reached $2,719 in late November.

Experts Predict a Wonderful 2025 for Gold

Typically, assets in the financial market experience pullbacks after significant rallies like gold’s. Investors, well-acquainted with market behavior, remain unfazed by gold’s recent drop to around $2,603. Many anticipate a great 2025 for gold, especially with Western countries facing inflation and geopolitical issues.

Rick Kanda, Managing Director of Gold Bullion Company, celebrated 2024 as a record year for gold: “There’s no denying that 2024 has been a record year for gold… a result of economic uncertainty, changes in global inflation, and increased demand.”

Gold performs well when investors pivot funds from bonds and equities. Besides serving as a currency, gold’s inherent value comes from its use in jewelry and technology.

According to UK-based gold marketplace Bullion Vault, investor skepticism remains regarding an improvement in global conditions next year. With Donald Trump preparing for a return to the White House, conflicts are anticipated. The platform also expects users to consolidate positions rather than sell, and a recent survey indicated a belief that gold could reach $3,070 by 2025, driven by geopolitical tensions and economic issues.

Donald Trump’s Bitcoin Crusade Amid Rising Debts

As many cite geopolitical tensions for favoring gold, the surge in sovereign debt is also notable. Economies in the West are experiencing significant deficits, worsened by pandemic pressures.

Additionally, Donald Trump may be leaning on Bitcoin. With nations pressing to establish Bitcoin reserves, the U.S. aims to lead. Trump recently confirmed plans for a national Bitcoin reserve following Bitcoin’s rise above $100k. In his NYSE speech, he emphasized the need for the U.S. to stay ahead of countries like China.

However, criticism surrounds this strategy. Some view it as a risky move that could escalate borrowing costs and worsen inflation, negatively impacting the dollar. A Bitcoin reserve might also permit customers to use Bitcoin as collateral for loans, which poses significant risks if Bitcoin prices fall.