What will be the Gold Price in 2025? Factors Affecting the Gold Price

People are wondering about what kind of investment they have to make during this pandemic situation. Many people share the same thought about keeping it safe with the investment. This must be the reason why people buy gold. It is considered stable even in the time of uncertainty. Still, people want to know the potential profit by asking about what will be the gold price in 2025. The price of gold is changing and affected by some factors.

4 Factors Affecting the Gold Price

1. Supply and Demand

The price of any traded commodity will be affected greatly by the demand and supply. Gold is just similar to any other traded commodity, after all. The price of gold will be determined by the demand and supply of gold. Because gold is mined, some people think that it is similar to oil. However, oil is a consumable product, but gold is not. It means that we can still find all the gold that has been mined in the world since it cannot be consumed. Every year gold is mined, but the amount is not that much. In this circumstance, the gold supply is pretty scarce. That is why the price will increase if the gold demand increase.

2. Inflation Rates

People choose gold for their long-term investment because it is not that affected by inflation and uncertainty. Nevertheless, it does not mean that the inflation rate will not affect the price of gold. The rising inflation rate will cause a decrease in the currency value. Most other investments will be affected greatly by the inflation rates after all. Because of this circumstance, more people choose to invest in gold when the inflation rate is getting higher. If you are asking about what will be the gold price in 2025, you need to consider the inflation rates no matter what.

3. Interest Rates

You cannot separate the price of gold from the interest rates. When the interest rates get lower, it means that people will not get good enough profit from their deposits. That is why they prefer to withdraw their deposits for buying gold. Once again, it will affect the price of gold because its demand is increasing. People tend to sell their gold when the interest rates are high. They choose to use the money to invest in deposits for getting higher interests. The demand gets lower and it means that the price of gold gets lower as well.

4. Jewelry Market

The world price of gold cannot be separated from the jewelry market. Some countries such as India and China have a high demand for gold during special events. The world jewelry market might be affected by this circumstance. During those special events, the demand for gold jewelry might increase highly. It will boost the gold price as well.

What Will be the Gold Rate in 2025?

Gold investment sounds simple because it is one of the most traditional investments that people have made since a long time ago. Nevertheless, people have to be more aware of the gold price to have a successful investment in gold. It is normal to be curious about what will be the gold price in 2025. Besides those factors above, the price of gold will also be affected by the government reserves, import duty, and currency fluctuations.