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Gold prices soared over 26% in 2024, marking their largest annual gain since 2010. This remarkable rally, driven by robust central bank purchases, geopolitical uncertainties, and monetary easing, culminated in an all-time high of $2,790.15 per ounce on October 31.

Spot gold ended the year at $2,624.44 per ounce, up 0.7% on Tuesday, while U.S. gold futures rose 0.8% to $2,638.90 per ounce.

XAU/USD

Gold Drivers and Outlook 2025

Central bank purchases were a key factor in gold’s strong performance, as global financial institutions sought to diversify reserves amidst geopolitical tensions and a shifting monetary landscape. Falling interest rates further supported gold as a safe-haven asset during a period of economic uncertainty.

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Although gold’s momentum slowed in November due to a stronger dollar following the “Trump euphoria,” analysts believe the factors that fueled its 2024 rise will persist into 2025. Central banks are expected to continue buying at a similar pace, though potential tariffs from the Trump administration targeting countries perceived as “de-dollarizing” could weigh on flows.

XAU/USD remains well-positioned to thrive in a low-interest-rate environment, serving as a hedge against economic and geopolitical risks. A renewed rally is anticipated in 2025, bolstered by a weakening U.S. labor market, persistently high interest rates that constrain growth, and increased demand for gold ETFs.

Other Metals

Silver also had an impressive year, with prices rising 22%, the best performance since 2020, despite a slight dip to $28.83 per ounce on Tuesday. In contrast, palladium and platinum struggled, with annual losses exceeding 17% and 8%, respectively, even as palladium rose to $910.45 per ounce and platinum edged up to $904.65 per ounce on Tuesday.

While gold led the safe-haven rally in 2024, silver stood out as a strong performer, while palladium and platinum faced sector-specific challenges. The metals market remains dynamic as investors assess economic developments and policy shifts heading into 2025.

Ignacio Teson

Economist and Financial Analyst

Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.