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Gold price up 28% since year’s start, more moderate growth expected in 2025 — WGC

As the organization notes, a combination of higher rates and lower economic growth could negatively impact investors and consumers

MOSCOW, December 12. /TASS/. Gold prices in 2024 have grown by more than 28% since the beginning of the year, and the precious metal traded on average 22% more expensive than in 2023, the World Gold Council (WGC) reported.

Based on a forecast of key factors affecting the price of gold, WGC assumes a positive, but more moderate price growth next year.

According to the WGC, gold may show the best annual growth result in more than a decade by the end of the year, and remains one of the best-performing assets of the year.

As the organization notes, a combination of higher rates and lower economic growth could negatively impact investors and consumers.

The WGC's 2025 outlook, assuming the US Federal Reserve cuts rates by 100 basis points by year-end, US inflation moderates slightly, and European central banks are likely to cut rates, suggests gold could continue to trade in the same range as in late 2024, with some upside potential.

As of 04:38 p.m. Moscow time (01:38 p.m. GMT), the price of a February 2025 gold futures contract on the Comex (a division of the New York Mercantile Exchange) is $2,735.8 per ounce.

The WGC also notes that demand for gold from global central banks remains strong, although it will end the year below previous records. Strong demand for gold from global central banks will continue into 2025, the WGC believes. The ultimate price dynamics of gold will depend on the interaction of four key factors affecting it: economic growth, risk, opportunity cost and momentum, the council believes.