Baku: The World Bank has projected that the average gold price on the world market will reach $3,400 in 2025.
According to Azeri-Press News Agency, the World Bank’s report indicates that the average price of gold for this year is expected to increase by 42.4%. The report forecasts that in 2026, the price of one troy ounce of gold will rise by 5.1% to $3,575, with a subsequent decrease of 5.6% to $3,375 in 2027.
The report highlights that the current rise in gold prices is occurring alongside increased geopolitical tensions and a weakening dollar. Unlike the situation in 1979-80, there is no sharp inflation or energy crisis. Instead, a significant increase in central bank purchases is noted as a key factor. Since 2022, these purchases have more than doubled compared to the 2015-2019 period.
Overall, the World Bank estimates that the precious metals price index will climb by 41% in 2025 and 6% in 2026, followed by a 6% decline in 2027. The report also comments that if geopolitical tensions and policy uncertainty intensify, gold prices could exceed current projections. However, a slowdown in industrial activity in major economies could reduce demand for silver and platinum, leading to lower prices.