Donald Trump’s upcoming term as United States President will be beneficial for the gold market, analysts at the Canadian Imperial Bank of Commerce (CIBC) (TSE: CM) have predicted.
They made this assessment in their 2025 outlook report released on Nov. 25. The analysts expect that gold will ascend by about US$150 per ounce next year and hover around US$2,800 per ounce with the latter half of 2025 being most beneficial for the commodity.
“We believe Trump’s implementation of tariffs could lead to retaliatory tariffs on U.S. exports, driving inflationary pressure and supporting gold prices,” they said, “which have historically risen alongside inflation.”
Rising tariffs, decreasing interest rates, trade battles and relaxed regulations brought about by the Trump Administration will support higher precious metals prices in the near term, the analysts think. In the longer term, they estimate that gold’s value will begin to steadily drop back down in 2027.
“On the geopolitical uncertainty front, we believe Trump’s unpredictable style will influence his foreign policy plan, which could provide tailwinds for the gold price throughout his term.”
Gold rose 67% from $1,200/oz to $2,000/oz during Trump's 1st term. Annualized 14% per year. $4,500/oz Gold in 2028 seems very reasonable. pic.twitter.com/uSoLJ7vOMS
— Garrett Goggin, CFA & CMT (@GarrettGoggin) November 6, 2024
Read more: Calibre Mining finds high grade gold mineralization outside of its Valentine Mine resource
Read more: High grades in Nicaragua expected to raise Calibre Mining’s mineral resource
Not the first with bullish outlook for the yellow metal in 2025
Trump’s impending leadership in the new year isn’t the only factor propelling gold’s spot price, according to another analyst.
Matthew Jones, precious metals expert at the British bullion broker Solomon Global, thinks that the ever-increasing risk of a third global conflict is driving up its value too. Jones expects US$2,800-dollar 1 oz coins to be on the menu by Christmas.
Moreover, JPMorgan Chase & Co (NYSE: JPM) just revealed that it is banking on the yellow metal to be valued at around US$3,000 by the end of 2025. It is not the only major New York financial institution that feels this way.
Like JP Morgan, Goldman Sachs Group Inc (NYSE: GS) made the same prediction in November.
These assessments have made many gold stocks more appealing to investors. Particularly gold producers that already have a strong performance track record, like Calibre Mining Corp (TSE: CXB) (OTCMKTS: CXBMF).
Calibre Mining a sponsor of Mugglehead news coverage
rowan@mugglehead.com
