Gold price prediction 2025: How high can precious metals rally?

Gold is on a roll, inching closer to the highly anticipated $3,000 per ounce milestone. In early U.S. trading on Thursday, gold climbed another $9.50 to hit $2,955.30, supported by yet another mild U.S. inflation report. Meanwhile, silver took a slight step back, slipping $0.083 to  after making impressive gains earlier in the week.

Inflation slows, precious metals rally

Inflation data out this week has made a compelling case for the Federal Reserve to start cutting interest rates sooner rather than later. The latest Producer Price Index (PPI) report revealed that wholesale inflation remained flat in February-a far cry from the expected 0.3% increase and a sharp drop from January’s 0.4% rise. Even more surprising? The "core" PPI, which strips out food and energy prices, actually declined by 0.1% when analysts were bracing for a 0.3% gain.

This follows Wednesday’s Consumer Price Index (CPI) report, which also came in below expectations. Year-over-year, the headline CPI rose 2.8% in February, while core CPI ticked up 3.1%-both cooling from previous months.

So, what does this all mean? Lower inflation strengthens the argument for the Fed to cut interest rates in the coming months, possibly as soon as June. And that’s good news for gold and silver, which tend to do well when interest rates drop. Why? Because lower rates make non-yielding assets like precious metals more attractive compared to interest-bearing investments.

Trade worries stoke safe-haven demand

Beyond inflation and interest rates, geopolitical and trade tensions are adding more fuel to gold and silver’s rally. The latest concern? Rising friction between the U.S. and its major trading partners.

U.S. Commerce Secretary Howard Lutnick recently stirred the pot, saying a recession would be "worth it" to implement President Trump’s economic policies. Meanwhile, Trump has made it clear he plans to hit back against the European Union’s counter-tariffs, raising fears of an all-out U.S.-EU trade war.

John Ciampaglia, CEO of Sprott Asset Management, summed it up well: "The potential impact of the tariff and trade threats are impossible to model, forcing the Fed to gauge economic data to help it determine its next move."

With so much uncertainty in the air, investors are increasingly turning to gold and silver as safe-haven assets to protect their portfolios.

Gold at $3000 per ounce?

Market experts remain bullish on precious metals, especially gold. Alex Ebkarian, chief operating officer at Allegiance Gold, didn’t mince words: "Gold is in a secular bull market. We forecast prices to trade between $3,000-$3,200 this year."

Standard Chartered analyst Suki Cooper pointed to strong ETF (exchange-traded fund) demand and continued central bank buying as major forces driving the rally. "Geopolitical uncertainty and the continued uncertainty created by tariff changes have really continued to stoke appetite for gold," she explained.

What’s next for Gold and Silver?

The spotlight is now on the Federal Reserve’s monetary policy meeting next Wednesday. While no immediate changes are expected to interest rates-currently at 4.25%-4.50%-investors will be hanging on every word from Fed officials for clues about potential rate cuts.

The Fed has already lowered rates by 100 basis points since September but hit the pause button in January. Many traders now believe June could be when the easing cycle resumes, giving another boost to precious metals.

As for silver, despite Thursday’s minor dip, the metal remains near its monthly high of $33.40. Given the current economic backdrop, silver continues to benefit from both monetary policy expectations and safe-haven demand.

Gold and Silver 2025 insights: Key trading levels to watch

Gold shows clear bullish bias on the daily chart, however prices towering past the upper bollinger band as well RSI breaching the 70 mark hints at overbought conditions. A further push up could see Gold hit the $3,000 all-time high. If gold slides on the other hand, the key levels to watch will be $2,880 and $2,835.

Silver is also seeing significant upside with clear bullish bias evident. However, prices are inching past the upper bollinger band as RSI towers slightly past 70- all signs of overbought conditions. Key levels to watch are the $34.000 target on the upside and on the downside, $32.528, and $32.000.

As for now, you can get involved and speculate on the price of these two precious metals with a Deriv MT5 account or Deriv X account.