Gold, silver, and platinum poised for gains in 2025, analysts say

Gold - Gold prices are forecasted to average $2,750 per ounce in 2025, driven by geopolitical uncertainty, central bank purchases, and investor demand [3][14][27] - Gold remains a standout asset due to its resilience in the face of rising rates and its role as a safe-haven asset amidst US fiscal challenges [28][29] - Central banks continue to view gold as a key diversifier, with investor holdings having room to grow as historical allocation levels remain below past peaks [19][26] - The expectation of lower US real rates over the next 12 months is crucial for gold's performance, despite its weakened relationship with real rates [16][36] - Analysts' top picks for gold in 2025 include Agnico Eagle Mines Ltd, Franco-Nevada Corporation, Wheaton Precious Metals Corp, Northern Star Resources Ltd, and AngloGold Ashanti, all well-positioned to benefit from rising gold prices [17] Silver - Silver is set to benefit from strong industrial demand, particularly from the solar and electric vehicle sectors, as well as supply constraints [2][20][21] - The solar sector accounts for the largest category under industrial consumption, driving growth in silver demand [5][21] - China's shift from a net exporter to a net importer is tightening global silver supplies, with no meaningful supply increases expected in 2025 [6][20] - Silver's performance is closely tied to global industrial production, with its price benefiting from an economic recovery in the coming months [30][39] - Bank of America analysts believe silver is well-positioned for price gains due to its solid fundamental backdrop and its role in the energy transition [22][40][45] Platinum - Platinum's market is expected to tighten due to supply-side pressures, with a larger deficit forecasted in 2025 [23][32][41] - Rising production costs and the potential for mine supply to remain flat or decline pose risks, with a high risk of supply disappointments [8][34] - Platinum fundamentals look stronger than palladium due to its lower exposure to the auto industry, although automotive demand is expected to decline by 2% year-over-year in 2025 [13][42] - Investor sentiment favors platinum over palladium, although hesitation remains in committing to platinum positions [9][43] - A potential import ban on Russian materials could lead to price increases for both platinum and palladium, with platinum expected to see stronger prices in the latter half of 2025 [10][31][46] Palladium - The palladium market remains under pressure due to surpluses, with no wholesale reassessment of fundamentals expected despite a price rebound in autumn 2024 [35][44] - Electric vehicles gaining market share are reducing demand for palladium, further contributing to its surplus [48] - A potential import ban on Russian materials could lead to a sharp rally in palladium prices, causing it to trade at a premium to platinum [10] General Precious Metals Outlook - The outlook for precious metals in 2025 is promising, with analysts expressing confidence in the performance of gold, silver, and platinum [24] - Diversification and safe-haven flows remain key drivers of investor interest in precious metals, particularly in an environment of elevated geopolitical risks and macroeconomic volatility [1][11] - Rising US funding needs and debt servicing costs are expected to enhance gold's appeal as a safe-haven asset [28] - The broader PGM market remains under pressure, particularly as electric vehicles continue to gain market share and reduce demand for palladium [48]