Crédit Mutuel AM - Gold Outlook

By Charlotte PEURON, Fund Manager, specialized in the precious metals industry, Crédit Mutuel Asset Management

Completed February 11, 2025

In January 2025, gold continued its upward trend, driven by economic and political risks (trade wars, inflation in the USA, and political instability, etc.) that the return of Donald Trump as President of the United States could bring. The price of gold set a new record, ending the month at $2,798.4 per ounce. Silver rose by 8.6% to $31.3 per ounce. This context remains favorable for precious metal producers, with the Nyse Arca Gold Miners index jumping by 14.9% (in USD). Indeed, the strong production results published in January by companies, combined with continually rising metal prices, suggest strong financial results for 2024, boosting investor confidence for 2025.

Early February follows the same trend, with gold recording a new all-time high, exceeding $2,900 per ounce. All indicators remain positive and in addition to central bank purchases, China launched a pilot program allowing certain insurance companies to invest in gold as part of their medium- and long-term asset allocation strategies. This will further increase demand for gold. The gold sector is significantly outperforming gold itself at the beginning of the year, with investors convinced that the rise in gold prices will persist and, therefore, seeking leverage through mining companies. The operating results of companies, which are expected to be strong and which started to be presented beginning on February 12 with Barrick Gold, should support this positive trend in the sector. In addition, companies will provide guidance for 2025, and it is likely that with metal prices at such high levels, analysts will have to revise their estimates. This will also support the sector.

This commentary is provided for information purposes only. The information contained in this publication is based on sources we consider reliable, but we do not guarantee their accuracy, completeness, validity or relevance. This non-contractual document does not constitute in any way a recommendation, solicitation of an offer, or an offer to buy, sell, or arbitrate, and should not, in any case, be interpreted as such.  Published by La Française Finance Services, registered office at 128 boulevard Raspail, 75006 Paris, France, a company regulated by the Autorité de Contrôle Prudentiel as an investment services provider, n° 18673 X, a subsidiary of La Française. Crédit Mutuel Asset Management: 128 boulevard Raspail, 75006 Paris is a management company approved by the Autorité des marchés financiers under number GP 97,138. Société Anonyme with a capital of €3871680, RCS Paris n° 388,555,021, Crédit Mutuel Asset Management is a subsidiary of Groupe La Française, the asset management holding company of Crédit Mutuel Alliance Fédérale.