Investing.com -- According to a prediction by global financial advisory and asset management firm deVere Group, gold prices are expected to reach new all-time highs of $3,300 per troy ounce before the conclusion of the second quarter in 2025. This optimistic projection follows an impressive rally that resulted in gold surpassing the $3,000 mark for the first time last Friday.

This surge in gold prices has been fueled by concerns over the impact of the trade war initiated by Donald Trump on global growth, which has led investors to seek refuge in the precious metal. Nigel Green, CEO of deVere Group, pointed to escalating tariffs, fluctuating trade policies, and growing worries about inflation and economic slowdown as factors driving capital towards gold, which is viewed as a reliable store of value.

Green also noted that geopolitical uncertainties, including the ongoing conflict in Ukraine, instability in the Middle East, and heightened tensions in the South China Sea, are reinforcing gold’s attractiveness. As military conflicts and diplomatic issues increase, investors are increasingly considering gold as a necessary hedge against uncertainty.

Furthermore, disruptions in global trade routes, such as those in the Red Sea, are exacerbating inflationary risks, adding urgency to gold’s rapid rise. Central banks worldwide are also accelerating their gold purchases, indicating a significant shift in international reserve strategies. The People’s Bank of China, for instance, has increased its holdings for the fourth month in a row, a trend mirrored by other monetary authorities seeking to offset currency risks and geopolitical exposure.

China’s recent financial reforms are also expected to boost demand for gold. The Chinese government has approved a pilot program allowing insurers to invest in gold, aligning with the country’s strategy to diversify away from US dollar-denominated assets. This new policy, coupled with the Chinese central bank’s aggressive gold reserve accumulation, is anticipated to spur further institutional investment, infusing additional capital into the market and supporting gold’s long-term upward trend.

Considering these factors, deVere Group has revised its gold price projection upward, forecasting that the precious metal will reach at least $3,300 per ounce by the end of Q2 2025. Green asserted that the rally in gold prices is not merely a reaction to short-term uncertainty, but reflects a fundamental shift in financial priorities at all levels, from institutional investors and central banks to private holders. He concluded that the case for higher gold prices has never been more compelling, given the expansion of trade wars, persistent inflationary pressures, evolving US diplomatic policy, increased gold buying by central banks, and China’s financial markets’ unprecedented embrace of bullion.

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