As we approach 2025, analysts are optimistic about the prospects of precious metals, particularly gold, silver, and platinum. UBS and Bank of America are confident in the performance of these metals, each with its unique drivers and market dynamics.
Gold continues to shine as a safe-haven asset, with geopolitical tensions, central bank purchases, and investor demand bolstering its outlook. UBS analysts anticipate new price highs in 2025, emphasizing the importance of lower US real rates and geopolitical uncertainty. They foresee continued central bank purchases and recommend key players like Agnico Eagle Mines Ltd and Franco-Nevada Corporation.
Bank of America projects an average gold price of $2,750 per ounce in 2025, citing global public debt concerns and diversification needs as supporting factors. They highlight gold’s resilience in the face of rising rates and its attractiveness to both central banks and investors.
Silver is set to benefit from strong industrial demand, particularly from sectors like solar and electric vehicles. UBS predicts silver will outpace gold in 2025, driven by supply shortages and growing demand from industries like solar. Bank of America also shares a positive outlook for silver, underscoring its fundamental strengths and limited supply increases.
Platinum faces a tightening market due to supply-side pressures, despite mixed demand, especially in the automotive sector. UBS analysts expect gradual tightening and higher prices over the medium to long term, highlighting potential supply disappointments and rising production costs. They foresee a larger deficit in 2025 and expect growing investor interest in the metal.
Bank of America notes that platinum is less exposed to the auto industry compared to palladium, but risks remain, including a potential import ban on Russian materials. They caution that palladium surpluses persist unless further production cuts are implemented. Both metals are closely watched as the market dynamics evolve.
Overall, the outlook for gold, silver, and platinum in 2025 is positive, with each metal poised to benefit from unique factors driving demand and supply dynamics. As investors navigate the uncertainties of the global economy, these precious metals offer stability and potential gains in the coming year.