GoldLong
Gold&Silver in 2025: Will They Reach New All-Time Highs?
The outlook for gold and silver in 2025 is determined by a number of key factors, including US Federal Reserve monetary policy, geopolitical tensions and US trade policies that may affect both inflation and global economic confidence. Below, we explore possible scenarios for both precious metals in this context.
Gold: Influence of a Strong Fed and Tariffs on the Global Economy
The relationship between the Fed's decisions and gold is critical to understanding its evolution in 2025. If the Fed maintains a tight monetary policy, with high interest rates, the dollar will strengthen due to higher yields on dollar-denominated assets. This may lead to downward pressure on gold, as investors tend to prefer assets with higher yields. In this scenario, gold, which is non-interest bearing, could see a decline in its attractiveness.
However, if the Fed is particularly aggressive in controlling inflation or preventing an economic recession, safe-haven demand for gold could increase. Global economic or political uncertainty, such as tensions in Eastern Europe or international trade relations, could trigger more gold buying, which could offset downward pressure from higher interest rates.
In addition, the policy of higher tariffs and lower government debt in the U.S. would play a role. If tariffs lead to a decrease in government debt through higher tax revenues, confidence in the U.S. economy could increase, which would reduce the need to seek safe haven gold. However, if tariffs limit imports and reduce the supply of goods, domestic inflationary pressures could emerge, increasing the demand for gold as a hedge against inflation.
Therefore, gold's future will depend on how the Fed manages its monetary policy in the face of inflation and how tariffs affect the U.S. domestic economy. If the Fed is successful in controlling inflation and stabilizing the economy, gold could experience downward pressure. However, if domestic inflation and tariffs increase economic concerns, gold could resume its role as a safe-haven asset against uncertainty. In this context, gold could experience a significant rally, with projections suggesting that it could resume a range between 2789 and 2850 per ounce by the end of 2025. In the absence of these conditions, downward pressure could send gold to a range in the USD2450 to USD2500 per ounce zone.
S1: $2,537.00
S2: $2,450.63
S3: $2,386.35
R1: $2,789.89
R2: $2,685.03
R3: $2,587.45
Silver: Outlook Influenced by Gold and Industrial Demand
Although silver closely follows gold, its evolution in 2025 will be marked by its dual role: as a safe-haven asset and as an industrial metal. In the event of a gold rally, silver is likely to benefit from that trend, but it will also get an additional boost from growing industrial demand in sectors such as technology and renewable energy. Silver is crucial for the manufacture of solar panels and electronic components, which could generate an increase in demand.
In this sense, silver could see a significant increase in value if industrial demand intensifies, particularly in countries investing heavily in green infrastructure. Projections for silver suggest that its price could exceed $34 per ounce, with an expected range between $21 and $32.5 if the trend is bearish and to seek highs of $34-38 per ounce in a bullish outlook, depending on the evolution of the global economy and Fed policies.
S1: $27.951
S2: $21.986
S3: $17.409
R1: $34.845
R2: $31.139
R3: $26.112
Conclusion: 2025, a Decisive Year for Precious Metals
Both gold and silver appear well positioned to experience price increases in 2025, albeit with factors that could generate volatility. Fed monetary policy and geopolitical tensions will continue to be determining factors, while U.S. trade policies and industrial demand will play a larger role in silver's performance. Investors will need to keep an eye on how these factors interact to maximize their returns.
Ion Jauregui - ActivTrades Analyst
*******************************************************************************************
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
Gold: Influence of a Strong Fed and Tariffs on the Global Economy
The relationship between the Fed's decisions and gold is critical to understanding its evolution in 2025. If the Fed maintains a tight monetary policy, with high interest rates, the dollar will strengthen due to higher yields on dollar-denominated assets. This may lead to downward pressure on gold, as investors tend to prefer assets with higher yields. In this scenario, gold, which is non-interest bearing, could see a decline in its attractiveness.
However, if the Fed is particularly aggressive in controlling inflation or preventing an economic recession, safe-haven demand for gold could increase. Global economic or political uncertainty, such as tensions in Eastern Europe or international trade relations, could trigger more gold buying, which could offset downward pressure from higher interest rates.
In addition, the policy of higher tariffs and lower government debt in the U.S. would play a role. If tariffs lead to a decrease in government debt through higher tax revenues, confidence in the U.S. economy could increase, which would reduce the need to seek safe haven gold. However, if tariffs limit imports and reduce the supply of goods, domestic inflationary pressures could emerge, increasing the demand for gold as a hedge against inflation.
Therefore, gold's future will depend on how the Fed manages its monetary policy in the face of inflation and how tariffs affect the U.S. domestic economy. If the Fed is successful in controlling inflation and stabilizing the economy, gold could experience downward pressure. However, if domestic inflation and tariffs increase economic concerns, gold could resume its role as a safe-haven asset against uncertainty. In this context, gold could experience a significant rally, with projections suggesting that it could resume a range between 2789 and 2850 per ounce by the end of 2025. In the absence of these conditions, downward pressure could send gold to a range in the USD2450 to USD2500 per ounce zone.
S1: $2,537.00
S2: $2,450.63
S3: $2,386.35
R1: $2,789.89
R2: $2,685.03
R3: $2,587.45
Silver: Outlook Influenced by Gold and Industrial Demand
Although silver closely follows gold, its evolution in 2025 will be marked by its dual role: as a safe-haven asset and as an industrial metal. In the event of a gold rally, silver is likely to benefit from that trend, but it will also get an additional boost from growing industrial demand in sectors such as technology and renewable energy. Silver is crucial for the manufacture of solar panels and electronic components, which could generate an increase in demand.
In this sense, silver could see a significant increase in value if industrial demand intensifies, particularly in countries investing heavily in green infrastructure. Projections for silver suggest that its price could exceed $34 per ounce, with an expected range between $21 and $32.5 if the trend is bearish and to seek highs of $34-38 per ounce in a bullish outlook, depending on the evolution of the global economy and Fed policies.
S1: $27.951
S2: $21.986
S3: $17.409
R1: $34.845
R2: $31.139
R3: $26.112
Conclusion: 2025, a Decisive Year for Precious Metals
Both gold and silver appear well positioned to experience price increases in 2025, albeit with factors that could generate volatility. Fed monetary policy and geopolitical tensions will continue to be determining factors, while U.S. trade policies and industrial demand will play a larger role in silver's performance. Investors will need to keep an eye on how these factors interact to maximize their returns.
Ion Jauregui - ActivTrades Analyst
*******************************************************************************************
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.