Global Market Outlook for 2025: Gold Rises, Oil Declines

Wall Street’s forecasts dominate the global market scene for 2025,
with divided opinions on the future of gold, base metals, and oil prices.
Below is a summary of key insights and expectations compiled by Bloomberg from major banks and financial institutions:

Contents

Gold
Oil
Base Metals
Comprehensive Analysis

Gold

The Safe Haven in the Spotlight

Gold continues to play its role as a safe haven for investors amid economic and geopolitical uncertainties.

BNP Paribas:
The strength of the U.S. dollar and the Federal Reserve’s cautious approach to monetary easing are expected to cap gold’s rally,
particularly in the second half of the year.
Bank of America:
Gold prices may surge to $3,000 per ounce by the end of the year,
driven by increasing demand for precious metals.
HSBC Global Private Banking:
With rising U.S. debt and potential inflation, gold is expected to maintain its upward trajectory in the coming months.
Schroders:
Gold will remain a key hedge against economic and geopolitical risks,
with anticipated gains, albeit lower than in 2024.

Oil

A Pessimistic Outlook Amid Supply Surplus

Oil price forecasts appear more conservative, pointing to continued oversupply in the market.

Macquarie Group:
The average price of West Texas Intermediate (WTI) crude is projected to reach $66 per barrel, with significant volatility expected.
UniCredit:
Estimates suggest that OPEC+ will aim to keep Brent crude prices around $75 per barrel unless major geopolitical escalations occur.
Bank of America:
Oil prices may drop by 20% compared to 2024, with Brent crude averaging $65 per barrel.
Société Générale:
Oversupply, coupled with Saudi Arabia’s spare production capacity, will likely keep oil prices on a downward trend.

Base Metals

Growth Opportunities Driven by Infrastructure

Investments in technology and infrastructure are expected to support higher base metal prices despite geopolitical and economic challenges.

Citi Group:
Precious metals are expected to perform well, with rising demand from central banks
as they diversify reserves away from the U.S. dollar.
Jefferies:
A positive year is anticipated for metals like copper, buoyed by economic recovery.
Lombard Odier:
Industrial metals will benefit from positive economic growth, although returns may be weaker than in 2024.

Comprehensive Analysis

While many institutions anticipate continued market volatility in 2025,
gold and copper stand out as promising assets, supported by demand for safe havens and infrastructure projects.
In contrast, oil’s prospects remain constrained by oversupply and tepid global demand growth.

This forecast diversity underscores the importance of focusing on flexible strategies
and cautiously diversifying investments across asset classes to maximize gains from market movements in the upcoming year.

Global Market Outlook for 2025: Gold Rises, Oil Declines

Global Market Outlook for 2025: Gold Rises, Oil Declines

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