Category: Silver

RBC Capital Markets just raised its gold price forecast to $2,823/oz for 2025, joining a growing number of banks calling for higher prices. Historically, the global investment bank–operating in North America, the United Kingdom, Europe, and Asia–has struck a skeptical tone with the yellow metal. This bullish shift reflects a sea change in market sentiment as gold bugs emerge from the woodwork to champion the ongoing rally.

From Bearish to Bullish

This elevated forecast is especially noteworthy given the bank’s tendency to favor conventional instruments. Even with a dire economic outlook, RBC has been prone to recommend gold-related stocks and other paper assets over physical bullion. Gold’s extended rally throughout 2024 has compelled many experts to reconsider the metal’s investment potential and continue raising their price predictions.

RBC is among the latest to dive into the growing wave of optimism with a revised 2025 price target of $2,823 per ounce. That represents a 5% gain from current levels. This optimistic outlook is even more striking when realizing RBC’s previously bearish stance. Just last year, the investment bank suggested gold would be limited to $1,700 in the fourth quarter of 2024, over $1,000 lower than where it stands today.

Gold Tailwinds in 2025

RBC’s dramatic 65% increase in its gold price forecast between 2024 and 2025 underscores the sheer impact of the drivers behind gold’s momentum. Analysts raise several key pillars underlying gold’s expected rise in the upcoming year:

Normalizing Inflation

Limitless pandemic-era spending and printing sparked one of the worst bouts of inflation in recent memory. As those numbers start to cool off, RBC sees investors swapping inflated stocks for stable gold. Although the stock market and gold sit near all-time highs, experts are warning of an overheated Wall Street while predicting higher climbs for the yellow metal. Investor sentiment remains cautious even with inflation coming down. Yet, recent numbers suggest this key metric remains at 35% away from the target inflation rate.

Monetary Easing

Earlier this year, the Federal Reserve reversed years of record-high interest rates with a serious rate cut. Although higher-than-expected inflation reduced the steepness of upcoming slashes, the central bank is still pursuing a course of monetary easing. These cycles tend to weigh on fiat currencies as the opportunity cost of holding physical assets like gold diminishes. As governments around the world adopt this easing posture, RBC analysts see increasing safe-haven demand as positive for gold.

Tariff Threat

RBC analysts see lingering tariff threats as a wild card for gold prices. If implemented, these aggressive policies could spark trade wars on several fronts, increasing inflationary pressures and rising living costs. The resulting market volatility and zapped investor confidence would act as a boon to gold prices. Even if the incoming administration doesn’t follow through, the looming possibility is enough to boost the yellow metal into the beginning of 2025.

Gold’s Shiny 2025 Outlook

RBC is one of the latest voices among a vast swathe of experts providing bullish 2025 gold price forecasts. Many economists, investors, financial institutions, and precious metals advisors are looking to higher price action, underscoring the potential for impressive gold gains. Accompanying these elevated forecasts are encouragements for investors to diversify their investments in the face of economic and geopolitical uncertainty.