Investor interest, inflation, and geopolitical uncertainty expected to continue to boost gold and silver sales in 2025: Augmont

Factors including investor interest, inflation, and geopolitical uncertainty are expected to continue to boost sales of gold and silver in 2025 as the precious metals provide a safe haven amid global turmoil, according to a new report by Augmont- Gold for All titled ‘Yearly Review of Gold Prices and Investment Opportunities For 2025.’

“I believe that the precious metal upward trend will continue in the short to medium term,” wrote Augmont – Gold for All’s head of research Renisha Chainani in a report shared with FashionNetwork.com. “The macroeconomic background will most certainly remain favourable for the precious metal as interest rates fall and foreign-reserve diversification continues amid geopolitical tensions, producing a perfect storm for gold. In the long term, Trump’s proposed policies, which include inflationary tariffs and stronger immigration controls, will constrain the Federal Reserve’s ability to decrease interest rates. A higher USD and tighter monetary policy may eventually present some headwinds for gold. Increased trade friction, on the other hand, may strengthen gold’s appeal as a safe-haven.”

Amid continuing geopolitical uncertainty, Chainani expects to see gold and silver retain their appeal as a hedge against inflation. The precious metals are predicted to see price fluctuations over the coming year which could lead investors to  ‘buy on dips’ and Chainani advises allocating at least 10% of the investment portfolio to gold and 10% to silver in 2025 for risk-adjusted returns.

2024 saw five key factors support the growth of gold and silver comprising monetary easing, political uncertainty, inflation, investment demand, and geopolitical uncertainty, and these are expected to continue to influence performance in 2025. Central banks across the world changed their monetary policy from tightening to easing in 2024 which was a boon to gold and silver. Inflation appears to be moving towards normalisation but with continued uncertainties globally. Moreover, global central banks have shown interest in investing in gold and the Reserve Bank of India purchased 77 tonnes of gold in 2024.