Ofi Invest AM forecasts a bullish trend for precious metals, predicting gold at $3,000 and a 20% rise in silver prices. Discover the insights.
In a landscape marked by uncertainty, the French asset management firm Ofi Invest AM has expressed a bullish outlook on the trajectory of precious metals prices through 2025. This optimism persists despite the tumultuous political climate, notably the implications of Donald Trump’s policies and the ongoing trade tensions between the United States and China.
According to Ofi Invest AM’s comprehensive analysis, the demand for metals—including gold, silver, platinum, and palladium—is poised for sustained growth. This anticipated demand is largely driven by geopolitical instability and market volatility, alongside expectations of persistently low real interest rates, which collectively enhance the allure of these metals as safe-haven assets. Furthermore, a pivotal factor influencing the metals market in 2025 is their diminishing correlation with traditional economic cycles. The burgeoning demand stemming from the energy transition is expected to insulate the metallurgical sector from cyclical economic downturns. This is particularly salient as China accelerates its pursuit of carbon neutrality, thereby bolstering the demand for metals integral to renewable energy technologies.
However, the specter of Trump’s hardline approach poses a significant risk to global economic growth. Nevertheless, it is anticipated that Trump may ultimately seek concessions, particularly with China, which could mitigate potential adverse impacts. Some analysts even speculate that a strategic alliance between China and the United States could emerge, potentially counterbalancing European influence.
Gold Price Projections: $3,000 on the Horizon
The year 2024 witnessed a remarkable surge in gold prices, attributable to two primary factors. Firstly, there was a notable increase in demand from Asian investors, particularly from China, in response to declines in equity and real estate markets. This shift towards safe-haven assets, such as gold, resulted in a significant uptick in exchange-traded fund (ETF) holdings across Asia, thereby propelling prices upward. Secondly, central banks, after several years of strategic accumulation, recorded unprecedented levels of gold purchases in the first quarter of 2024. While the exact figures regarding the People’s Bank of China’s (PBoC) gold acquisitions remain shrouded in ambiguity, Ofi Invest AM projects that the price of gold could reach an impressive $3,000 per ounce by 2025—a milestone that appears increasingly attainable given recent price escalations.
Silver Forecasts: A Bright Future Ahead
In parallel, silver prices have experienced upward momentum, driven by heightened demand and production constraints. However, the metal’s industrial applications have also introduced volatility into its pricing dynamics. Despite challenges, including mixed signals regarding China’s economic support and the ramifications of the U.S. elections on the dollar and interest rates, silver concluded the year with commendable double-digit gains. The Silver Institute reported a 1% increase in demand for silver in 2024, marking it as potentially the second-highest year for silver consumption on record. This surge is underpinned by a transformative shift in the market, as silver’s unparalleled electrical conductivity positions it as a critical component in low-carbon technologies, particularly in solar energy and electric mobility.
Ofi Invest AM posits that the confluence of limited supply, dwindling inventories, and robust industrial demand will likely propel silver prices upward by approximately 20% in 2025, with projections estimating prices to range between $36 and $38 per ounce.
As we navigate the complexities of the global economic landscape, the insights from Ofi Invest AM serve as a beacon for investors seeking to capitalize on the evolving dynamics of the precious metals market.
