Gold posts best annual performance since 2010, several major banks are expecting it to rise to $3000.

On Tuesday, gold futures closed higher, driving gold to its largest annual percentage increase since 2010 in 2024. Data shows that COMEX gold futures for January closed up 0.9% on Tuesday, at $2629.20 per ounce; the year-to-date increase in 2024 is 27.5%, the largest annual increase since 2010; over the past two years, the price of gold has increased by 44.5%. Gold has shown strong momentum in 2024, mainly driven by escalating geopolitical tensions, loosening monetary policies, and increasing central bank purchases, among other factors driving safe-haven demand. Analysts predict that the factors supporting gold prices in 2024 will continue into 2025. However, analysts also note that policy resistance from the upcoming Trump administration may exacerbate inflation and slow down the pace of rate cuts by the Federal Reserve. Wall Street predicts that gold will shine again in 2025. Analysts from JPMorgan, Goldman Sachs, and Citigroup have set their target price for gold in 2025 at $3000 per ounce. Analysts state that as investors become disappointed with falling yields, some of the $3.7 trillion held in money market funds will enter gold ETFs. JPMorgan analyst Greg Shearer called this the "most bullish part of the gold cycle." The analyst pointed out that another advantage of gold is that, besides being a store of wealth, it has few other uses, "gold does not have the industrial baggage of other commodities, which can be dragged down in trade disruptions". Citigroup also notes that price increases in gold tend to be long-lasting: in the past six years, gold futures prices have risen by at least 20% in five of those years, with prices rising again the following year. Over these five years, the average increase was over 15%.