A British gold trader stated that it is not accidental that gold will be able to withstand the rise in US Treasury yields and the strengthening of the US dollar in 2024, as this precious metal will continue to be an important global financial asset.

Paul Williams, Managing Director of Solomon Global, stated in his 2025 outlook that the conditions that drove gold prices to 39 record highs last year still exist and should maintain good support for precious metals in the new year.

Williams stated in the report, "2024 highlights the eternal role of gold as a safe haven asset. In a world of geopolitical conflict and economic uncertainty, gold provides investors with stability and safety. The historic high set in 2024 not only reflects market conditions, but also reflects a broader sentiment of caution and risk hedging. This situation seems to continue in 2025

One of the biggest factors driving gold prices to historic highs is geopolitical instability, as the world is facing two major conflicts: the Russia Ukraine war and a new war between Israel and Hamas. After former Syrian President Assad was exiled to Russia, the chaos in the Middle East will only intensify.

Williams said that there seems to be little hope of resolving the escalating conflicts in Ukraine or the Middle East through diplomatic channels.

After President elect Trump continued to threaten major tariffs to support his America First policy, geopolitical uncertainty has also increased in recent days.

Williams said, "Trump's tariffs are not harmful, but may actually support gold prices. The cost of tariffs is essentially a tax on imported goods, which is usually passed on to consumers at higher prices. For gold investors, such policies provide a unique opportunity, mainly because tariffs often create economic uncertainty and inflationary pressure, which have historically been favorable for gold

An increasing number of political experts warn that geopolitical uncertainty will exacerbate the ongoing trend of deglobalization, creating a multipolar world and making gold an attractive neutral financial asset. Williams said that in this environment, he expects central banks around the world to continue to diversify their reserves away from the US dollar and purchase gold this year.

He said, "Countries are increasing their gold reserves in an attempt to reduce their dependence on the US dollar in the process of de dollarization. As more and more banks shift from US bonds to diversification, this trend seems to continue or even intensify, and may provide further upward momentum for gold. In addition, the growth of wealth in emerging markets continues to drive demand, especially in times of economic or political uncertainty. This strategic move by central banks highlights a broader shift in the global financial system

Williams believes that the last catalyst driving up gold prices this year is the increasingly weak economy. Although the US economy has maintained considerable resilience, economists point out that risks are increasing as the labor market slows down. Williams said, "If the economic situation worsens in 2025, leading to a global economic slowdown or recession, investors may continue to flock to gold. Weak economic data or slower growth may support an increase in gold prices, and the possibility of inflation rebounding will continue to affect gold prices.