Gold Price Prediction in 2025: Will it Decline or Increase?

Jakarta, Pintu News – Gold prices are predicted to remain high in 2025, despite global uncertainties that continue to affect the market. Experts believe that gold prices can maintain high levels along with geopolitical tensions and unstable macroeconomic conditions.

However, recently, gold prices have experienced a decline after a trade deal between the US and China reduced investors’ interest in gold as a protective asset.

Nonetheless, some predictions suggest that gold prices could skyrocket again, even reaching new records, if global tensions escalate again.

Global Uncertainty Drives Gold Price Increase

Gold prices often rise amid economic and geopolitical uncertainty, and 2025 is predicted to be a similar year.

Despite a temporary drop in gold prices, tensions between major countries such as China and the US, as well as crises in the Middle East, provide the potential for gold prices to surge again. Gold is a safe-haven asset, which is widely sought after when stock markets and other risky assets decline.

Although the geopolitical situation is starting to show some stability, investors who are worried about a potential major conflict with China or deeper tensions in the Middle East, still choose gold as a safe haven.

However, these factors do not necessarily lead to a sustained rise, given that economic stability can reduce gold’s appeal, as it did at the end of the second quarter of 2025.

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Gold Price Projections by HSBC: Increase to $3,215 per Ounce

HSBC expects gold prices to continue to strengthen in 2025. The bank raised its 2025 average gold price projection from $3,015 per ounce to $3,215, citing higher risks associated with government debt and continued geopolitical tensions.

This projection is based on gold’s typically good performance during economic uncertainty, as seen in gold prices hitting a record high of $3,500 last April.

HSBC also predicts that the price of gold by the end of 2025 will be around $3,175 per ounce, with price fluctuations being highly volatile.

Meanwhile, by 2026, the price of gold is expected to drop slightly to around $3,025. This prediction shows that despite a potential price correction, gold is still seen as an effective hedge for investment portfolios.

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Why is the price of gold falling?

Despite the optimistic projections, there are also concerns that gold prices could decline if several factors change. One of these is an increase in interest rates by central banks, which could reduce gold’s appeal as it does not provide a yield or interest.

In addition, global economic stability may decrease investor interest in safe-haven assets, such as gold, and trigger fund flows into riskier assets, such as cryptocurrencies.

High interest rates reduce the attractiveness of gold as the opportunity cost of holding gold becomes greater compared to yielding assets.

On the other hand, if global tensions ease and stock markets stabilize, gold may lose its prime position as a hedge asset, shifting to riskier but potentially higher-yielding stocks or cryptocurrencies.

Conclusion

Despite the temporary decline in gold prices, long-term projections show that gold will still be the top choice amid global uncertainty.

Whether gold prices will remain high or experience further declines, remains dependent on the development of the geopolitical situation and key decisions from central banks around the world.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• Reuters. HSBC raises average gold price forecasts for 2025 and 2026. Accessed July 16, 2025.
• Economic Times. Gold price prediction by experts for 2025: Will gold rate fall or rise? Accessed July 16, 2025
• Featured Image: Generated by AI