Gold Prices to Depend on Interconnected Economic Factors: World Gold Council

The World Gold Council has identified five key factors that will shape gold prices in the coming period. According to the report, the risk of a renewed wave of global inflation remains present, but higher inflation alone is unlikely to trigger another record-breaking rally in gold prices.

The report emphasizes that the precious metal's outlook will depend on a combination of interconnected economic and monetary factors, including real interest rates, the strength of the U.S. dollar, economic growth expectations, continued central bank purchases, and sustained demand from investors and consumers across Asian markets.

The World Gold Council believes that gold has maintained remarkably strong performance since 2023 despite historically elevated U.S. real interest rates, reflecting a fundamental shift in the global demand structure compared with previous market cycles.