Crédit Mutuel AM: Golden Times

Crédit Mutuel AM: Golden Times

18 februari 2025

Handelsconflict Goud Geopolitiek
Goud (3).png

In January 2025, gold continued its upward trend, driven by economic and political risks (trade wars, inflation in the USA, and political instability, etc.) that the return of Donald Trump as President of the United States could bring.

The price of gold set a new record, ending the month at $2,798.4 per ounce. Silver rose by 8.6% to $31.3 per ounce. This context remains favorable for precious metal producers, with the Nyse Arca Gold Miners index jumping by 14.9% (in USD). Indeed, the strong production results published in January by companies, combined with continually rising metal prices, suggest strong financial results for 2024, boosting investor confidence for 2025.

Early February follows the same trend, with gold recording a new all-time high, exceeding $2,900 per ounce. All indicators remain positive and in addition to central bank purchases, China launched a pilot program allowing certain insurance companies to invest in gold as part of their medium- and long-term asset allocation strategies. This will further increase demand for gold.

The gold sector is significantly outperforming gold itself at the beginning of the year, with investors convinced that the rise in gold prices will persist and, therefore, seeking leverage through mining companies. The operating results of companies, which are expected to be strong, should support this positive trend in the sector. In addition, companies will provide guidance for 2025, and it is likely that with metal prices at such high levels, analysts will have to revise their estimates. This will also support the sector.

Gerelateerde berichten