State Street Global Advisors expects further gold rally despite dollar gains

Currently, the dollar is recovering due to the Federal Reserve’s forecast signaling two rate cuts this year, and not three, as markets expected. However, this will not be a major threat to gold prices for the rest of the year, says George Milling-Stanley, strategist at State Street Global Advisors.

He believes the uncertainty surrounding US President Donald Trump's trade policies will support gold prices. Demand for the precious metal is known to rise amid economic volatility. Meanwhile, any clarity around US duties could put downward pressure on prices. Despite this, Milling-Stanley predicts further gains for gold.

For now, State Street Global Advisors is sticking to its initial price forecast for 2025. According to it, gold prices will be trading between $2600 and $2900 per ounce. The range of $2900–$3100 per ounce is also possible, but such a scenario is much less likely to unfold.

In addition, inflows into gold-backed exchange-traded funds (ETFs) will be a major driver of gold demand for the rest of the year, Milling-Stanley says.