While UBS usually plays it safe with gold prices, the Swiss investment bank’s chief investment officer is now predicting a mid-2025 gold price of $2,850 per ounce.Sprott Gold Report’s John Hathaway is equally enthusiastic, noting that gold rose 27 per cent in 2024—its best annual gain in 14 years.
Meanwhile, London-based BullionVault is now expecting gold to reach $3,000/oz, following Deutsche Bank making a similar forward price prediction.
A breakout is comingJeffrey Christian of London’s CPM Group is another gold bull, noting that the February contract reached a high of $2,735/oz this week after trading between $2,600/oz and 2,700/oz since October.
Christian does not know whether the breakout has already begun, or if we are still waiting.
“One way or the other, it’s coming,” he said.
‘The only game in town’
Forget base metals and specialty metals—according to Sydney’s Warwick Grigor of Far East Capital, gold is now the “only game in town”.
Gold is winning against the growing US dollar and Treasury yields, two trends that normally work in an inverse relationship to the precious metal.
Writing as the $A price reached a new high of A$4,375/oz, Mr Grigor said that gold is “in an uptrend that knows no ceiling.”
“Wall Street analysts have already started talking of US$3,000oz-$3,500oz in 2025,” he added.
That works out to as much as A$5,650/oz—a dream for Aussie gold miners.
A new era
In the wake of the 1987 stock market crash, gold took until 2009 to reach $1,000/oz.
Through the terrible 1990s the gold price bounced along the bottom and exploration began to shrivel.
Small explorers – the companies on which the industry depends to drill away and find deposits large and small – were hamstrung by their inability to raise fresh capital.
Many fled the mining sector and sought survival in technology as the dot-com bubble inflated unsustainably.
Gold was once again hit hard in 2013 and the sector feared things would never right themselves.
12 years later, that fear is well and truly gone and gold has entered a new era.
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